Apco oil liquidating trust
In Hemmen, the Ninth Circuit held a chapter 7 trustee personally liable for failing to honor an IRS notice of levy against the allowed administrative expense claim of a corporate debtor's president. Ohio 1998); see, also, In re Hudson Oil Co., 200 B. This presentation will focus on the City of Wichita’s largely failed efforts to collect its response costs for remediating the Gilbert \u26 Mosley Site (“Site”), one of the premier Brownfield redevelopment models. Trustees of the Apco Oil Corporation Liquidating Trust, 306 F. Both parties used computerized groundwater modeling to determine the plume sizes allegedly migrating from each source, and mathematical computations to allocate orphan shares within the Site.Plaintiff City of Wichita (City) brings this private party action against (1) the Trustees of the APCO Oil Corporation Liquidating Trust (ALT); (2) Reid Supply Company, Inc., Charles P. Chlorinated solvents do not occur naturally either in soil or groundwater. Groundwater readings taken at monitoring well WM-1, just south of APCO's property line, revealed concentrations of PCE in the shallow groundwater (18 feet bgs) at 1200 ppb, TCE at 7300 ppb, and cis-1-2-DCE at 17,000 ppb, respectively.*fn21 Additional geoprobe sampling was performed on the former APCO property in March 2000.*fn22 The samples were taken at location 910B, directly beneath the location of APCO's loading dock. 1996) (dicta indicating that the liquidation trust would have been liable if amendments to 28 U. §1930(a)(6) had occurred before plan confirmation). One court addressing this issue held that because "Congress intend[ed] such fees be paid by chapter 11 debtors prior to conversion or dismissal...," and because the trust has "essentially stepped into the shoes of the original debtor," then the trust is "liable for any such fees which may be imposed." In re CSC Indus. The City saddled the last two defendants remaining at trial with the entire orphan share; the trustees argued that they should be saddled with little if any orphan share.
Liquidation trusts typically allow for a larger return than a "fire sale" of the debtor's assets, which are transferred into a trust for the benefit of creditors upon confirmation of a liquidating plan. A liquidating plan usually contemplates establishing a liquidation trust, assigning assets and causes of action, and appointing a liquidation trustee. 1989) ("Trustees of an estate in bankruptcy are subject to personal liability for willful violations of fiduciary duties."). To avoid such personal liability, trustees must take the utmost care in their duties, particularly considering the differing causes of action that could accrue. Supreme Court held that under the Internal Revenue Code, a liquidation trustee must "pay the tax due on the income attributable to the corporate debtors' property because [26 U. C.] §6012(b)(3) requires him to make a return as the 'assignee' of the 'property..a corporation.'" Holywell Corp. After confirmation and appointment, the liquidation trustee then serves as the liquidation trust's representative and is responsible for complying with the trust agreement (and confirmation order), liquidating the assets and making distributions to trust beneficiaries. This necessitates a liability policy and/or an indemnity agreement to protect the liquidation trustee from errors and omissions. As a "trustee," a liquidation trustee has potential exposure for numerous liabilities. Considering quarterly fees to be an "administrative expense for which the liquidation trust was responsible," the court found that "imposing post-confirmation quarterly fees upon the liquidation trust [was] neither an attempt to modify the plan nor a violation of separation of powers...." Id. Although liquidation trustees have not generally been held personally liable for environmental damage, the potential exists under federal and state law. Specifically, if a liquidation trustee engages in activities that could constitute managing or operating of trust property under 28 U.