• Supreme Court Alters Balance of Power Among Debtors and Others Who Share Environmental Liabilities
  • August 28, 2007
  • Law Firm: Winston & Strawn LLP - Chicago Office
  • In Atlantic Research,1 the United States Supreme Court held that a "potentially responsible party" (a "PRP") that voluntarily cleans up a contaminated site is entitled to recover a portion of its clean-up costs from other PRPs under Section 107(a) of CERCLA.2 Although this decision was rendered solely on CERCLA grounds, it may adversely affect the ability of reorganizing debtors to exit bankruptcy free from environmental claims, while strengthening the hand of nondebtor voluntary remediators who assert such claims against an actual or potential bankruptcy debtor.