Bankrupt RG Steel Must Face Air Pollution Suit, Judge Says

Law360, Wilmington (July 9, 2012, 4:39 PM EDT) -- Despite the steelmaker's ongoing bankruptcy, a West Virginia federal judge on Monday allowed the U.S. government to move forward with a lawsuit against an RG Steel LLC unit for alleged violations of air pollution and hazardous waste laws.

U.S. District Judge John Preston Bailey found that the suit targeting RG Steel Wheeling LLC is exempt from the automatic stay in the bankruptcy under the police and regulatory powers exception in Section 362(b)(4) of the Bankruptcy Code.

In February, the U.S. Department of Justice and the West...
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