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Closing a case that was referred to DOJ, but the party filed Chapter 11 bankruptcy and is now protected from lawsuits


If a referral is made to DOJ and subsequently the party files for Chapter 11 bankruptcy, the company is protected from lawsuits. There will be no new, site-specific, complaint /consent decree filed or issued during the bankruptcy process. EPA will join a line of unsecured/secured creditors with its Proof of Claim in the Bankruptcy Court.

While this action is stayed pursuant to the bankruptcy, the user should enter an actual date for the "Enforcement Action Closed" milestone. The Complaint milestone, Final Order Lodged, and Final Order Entered milestones should all be left blank. An appropriate actual enforcement action closed date can come from a written communication between the Region and DOJ making the call to drop the case, or something from the defendant stating they have filed Chapter 11and are protected from lawsuits. The Resolution Type will be "EPA Did Not Pursue." The case summary should also have a statement about the resolution.

If the defendant emerges from bankruptcy and EPA and DOJ decide to re-open the case against them using the original referral, you can delete the "Enforcement Action Closed" date milestone and the Resolution Type "EPA Did Not Pursue." Then use the record with the original referral for the re-emerged ongoing action.

 

 

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