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IN RE SMITH-DOUGLASS, INC.

Nos. 87-1683, 87-1684.

856 F.2d 12 (1988)

In re SMITH-DOUGLASS, INC., Debtor. BORDEN, INC., Plaintiff-Appellant, and Bernard R. Garrett; State of Illinois, Plaintiffs, v. WELLS-FARGO BUSINESS CREDIT; Defendant-Appellee, Gregory B. Crampton, Trustee for Smith-Douglass, Inc., Appellee. In re SMITH-DOUGLASS, INC., Debtor. STATE OF ILLINOIS, Plaintiff-Appellant, and Borden, Inc.; Bernard R. Garrett, Plaintiffs, v. WELLS-FARGO BUSINESS CREDIT; Defendant-Appellee, Gregory B. Crampton, Trustee for Smith-Douglass, Inc., Appellee.

United States Court of Appeals, Fourth Circuit.

Decided September 6, 1988.

Attorney(s) appearing for the Case

John M. Murchison, Jr. (Kennedy, Covington, Lobdell & Hickman, Charlotte, N.C., Thomas W. Hill, Melvin D. Weinstein, Emens, Hurd, Kegler & Ritter, Columbus, Ohio, on brief), for Borden, Inc.

Marcia Bellows, Asst. Atty. Gen., Environmental Control Div., Chicago, Ill. (Neil F. Hartigan, Atty. Gen., Shawn W. Denney, Sol. Gen., Springfield, Ill., on brief) for State of Ill.

Gregory B. Crampton (Merriman, Nicholls & Crampton, P.A., Raleigh, N.C., on brief), for Gregory B. Crampton, Trustee.

Thomas B. Anderson, Jr. (Jenkins & Gilchrist, P.C., Dallas, Tex., on brief), for Wells Fargo Business Credit.

Before HALL and WILKINSON, Circuit Judges, and MERHIGE, Senior District Judge for the Eastern District of Virginia, sitting by designation.

MERHIGE, Senior District Judge:

The matter before the Court presents the question of the conditions under which a trustee in bankruptcy will be permitted to abandon property on which violations of state environmental laws exist. For the reasons set forth below, we affirm the finding that unconditional abandonment was appropriate.

Background

In the course of its attempted reorganization,1 the debtor Smith-Douglass...

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