US V. Apex Oil: Will High Court Revisit Ohio V. Kovacs?

Law360 (June 30, 2010, 2:49 PM EDT) -- While U.S. Supreme Court watchers digest the court's recent opinions in its high-profile gun rights and method patents cases, bankruptcy practitioners should have their eye on the appeal of a Seventh Circuit decision that could have a significant impact on bankruptcy cases.

A petition for review of United States v. Apex Oil Co. Inc., filed in February, asks the Supreme Court to determine whether an injunction requiring a debtor to clean up contaminated property at an estimated cost of $150 million creates a “right to payment” and thus a “claim” subject to discharge under 11 U.S.C. § 101(5)(B).

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