RECENT FEDERAL DECISIONS

October 2001

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First Circuit Allows Creation and Perfection of State Government's Environmental Cleanup Lien Despite Bankruptcy Stay
In Re 229 Main Street Limited Partnership

In a decision favoring state governments that clean up contaminated property and seek to enforce cost recovery against owners of the property who subsequently declare bankruptcy, the United States Court of Appeals for the First Circuit has held that the automatic stay contained in the Bankruptcy Code did not prevent the Commonwealth of Massachusetts from filing an environmental cleanup lien on property after the owner had filed a petition in bankruptcy.