ELR Citation: ELR 20714
No(s). 84-1826 (4th Cir. May 6, 1985)

The court holds that civil penalties assessed against a debtor in possession for postpetition violations of the Surface Mining Control and Reclamation Act are allowable as an administrative expense of preserving the estate under §§57(j) and 64(a) of the old Bankruptcy Act. The court holds that §57(j), which disallows imposition of penalties on a debtor, applies only to prepetition claims. Section 57(j) permits all postpetition penalty claims, regardless of their type and regardless of whether they are incurred by the trustee or by the debtor in possession.

Counsel for Appellant
Thomas W.B. Porter
Civil Division
Department of Justice, Washington DC 20530
(202) 724-7255

Robert S. More, Ass't U.S. Attorney
P.O. Box 15006, Knoxville TN 37901
(615) 251-5151

John P. Alderman, U.S. Attorney
P.O. Box 1709, Roanoke VA 24008
(703) 982-6250

Counsel for Appellee
Kurt J. Pomrenke, James W. Elliott Jr.
White, Elliott & Bundy
P.O. Box 8400, Bristol VA 24203
(703) 466-8400

Before RUSSELL, WIDENER, and PHILLIPS, Circuit Judges.