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Bankruptcy Keyed to Levitan, 3rd Ed.
Ohio v. Kovacs
Citation:
469 U.S. 274 (1985)Facts
William Kovacs was the chief executive officer of Chem-Dyne Corporation, which operated a hazardous waste disposal site in Hamilton, Ohio. In 1976, the State of Ohio sued Kovacs for polluting public waters, maintaining a nuisance, and causing fish kills in violation of state environmental laws. In 1979, Kovacs signed a stipulation and judgment entry settling the lawsuit, which enjoined further pollution, required removal of specified wastes, and ordered payment of $75,000 to compensate for wildlife injury. When Kovacs failed to comply with the injunction, Ohio obtained appointment of a receiver who was directed to take possession of Kovacs’ assets and implement the cleanup. Before the receiver completed the cleanup, Kovacs filed for personal bankruptcy. Ohio then sought to have the bankruptcy court declare that Kovacs’ cleanup obligation was not dischargeable in bankruptcy because it was not a “debt” or “liability on a claim” under the Bankruptcy Code.
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