United States v. Apex Oil Co.
United States Court of Appeals for the Seventh Circuit
579 F.3d 734 (2009)
After Apex Oil (defendant) successfully reorganized under Chapter 11 and had its preconfirmation debts discharged, the United States (plaintiff) sued under the Resource Conservation and Recovery Act (RCRA) to compel Apex to clean up contamination caused by a corporate predecessor; the district court ordered cleanup, which would require Apex to hire an outside firm at an estimated $150 million cost, and Apex appealed, arguing the government's claim had already been discharged in its bankruptcy.
Whether a preconfirmation claim for equitable relief, authorized by a statute that does not entitle the claimant to monetary relief, may be discharged in bankruptcy where satisfying the equitable relief would require the debtor to incur substantial monetary costs.