Munce’s Superior Petroleum Prods., Inc. v. N.H. Dep’t of Envtl. Servs.

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Because Munce's Superior Petroleum Products, Inc. (MSPP) failed to comply with a state court order compelling it to bring its facilities into compliance with New Hampshire environmental law, $194,220 in contempt fines was levied against MSPP. The state court orders were issued after MSPP filed a Chapter 11 bankruptcy petition, although the violations of New Hampshire law began before MSPP filed its Chapter 11 petition. The New Hampshire Department of Environmental Services filed a motion to give the fines administrative expense priority, which the bankruptcy court granted. The district court affirmed. The First Circuit Court of Appeals affirmed, holding that, under the circumstances of this case, the post-petition contempt fine assessed by the New Hampshire state court against MSPP, a debtor-in-possession, was entitled to administrative expense priority. View "Munce's Superior Petroleum Prods., Inc. v. N.H. Dep't of Envtl. Servs." on Justia Law