ELR Citation: ELR 20991
No(s). 91-15879 (9th Cir. Jun 15, 1993)

The court holds that a claim for response costs under the Comprehensive Environmental Response, Compensation, and Liability Act filed by the California Department of Health Services (CDHS) against individuals in Chapter 7 liquidation was discharged by the individuals' bankruptcy. The court holds that the state had sufficient knowledge of the individuals' potential liability to give rise to a contingent claim for cleanup costs before they filed their personal bankruptcy petition, because an inspector from the California Water Board (CWB) visited the contaminated site owned by the individuals' timber company, and a prepetition letter from the CWB to one of the individuals demonstrated that the CWB knew that a serious environmental hazard existed at the site. The court imputes the CWB's knowledge to the CDHS, because the CWB and the CDHS are agencies of the same state and generally involved in many of the same capacities.

Counsel for Appellant
Timothy R. Patterson, Deputy Attorney General
Attorney General's Office
110 W. 'A' St., Ste. 700, San Diego CA 92101
(619) 237-7351

Counsel for Appellees
Terrance L. Stinnett
Goldberg, Stinnett & MacDonald
44 Montgomery St., Ste. 2900, San Francisco CA 94104
(415) 362-5045

Per curiam (before Aldisert,^* Goodwin, and Fletcher, JJ.)