Bankruptcy Legal Settlements
An Oakland personal injury lawyer with Van Blois & Associates has assisted the SettlementBoard editorial team in identifying topics of importance to readers of this blog.
General Motors on the Hook for Environmental Remediation in Bankruptcy Proceedings
In a high-profile case in 2009, General Motors (GM) filed the fourth largest bankruptcy in United States history in exchange for a bailout and restructuring deal with the U.S. government. As part of the bankruptcy proceedings, the company filed a motion to sell almost all of its assets, which included manufacturing plants and other real estate properties.
According to the Environmental Protection Agency's (EPA's) website, the Department of Justice filed a claim on behalf of the EPA and the National Oceanic and Atmospheric Administration. The claim sought to keep GM on the hook for past response costs and possible future remediation under CERCLA.
In late 2010, GM agreed to a $773 million settlement to resolve its liabilities at 89 sites in 14 states.
U.S. Settles in Bankruptcy Court with Oil Company over Cleanup Costs, Penalties
Investors Business Daily reported on another EPA-related bankruptcy case with Caribbean Petroleum Corp., Caribbean Petroleum Refining L.P. and Gulf Petroleum Refining Corp. (collectively, CAPECO).
The uncredited article, titled "United States Announces Bankruptcy Settlement with Oil Company in Wake of October 2009 Explosions and Fire," noted that the $8.2 million settlement was reimbursement for EPA and Coast Guard cleanup efforts at CAPECO's Bayamon facility in Puerto Rico, as well as penalties under the Clean Water Act and Resource Conservation and Recovery Act.
The agreement also grants the United States more than $18 million in unsecured claims for cleanup and penalties prior to CAPECO's bankruptcy.
Former Client Loses $6.3 Million in the Wake of Attorney's Ponzi Scheme, Bankruptcy
Martha Neil, of "ABA Journal," reported on a summary judgment related to New York Attorney Marc Dreier's bankruptcy proceedings.
In "$6.3M Settlement Wired to Marc Dreier is Toast, Bankruptcy Judge Tells Ex-Lawyer’s Ex-Client," technology investor Paul Gardi and his company, Alex Interactive Media Inc., lost a legal battle to recoup a $6.3 million settlement that was pocketed by their former attorney, Marc Dreier.
The $6.3 million payment was originally for a breach of contract settlement between Gardi and hedge fund JANA Partners LLC. Dreier forged a signature on the settlement documents, pocketed the money and used it in his Ponzi scheme.
Gardi took JANA back to court to request a second payment. The bankruptcy judge ruled in favor of JANA. The firm was an innocent party in the fraud and not liable for any further payments.
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