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IN RE LAZAR

Bankruptcy Nos. LA 92-39039SB, LA 92-39042 SB. Adv. No. LA 96-01575 SB.

200 B.R. 358 (1996)

In re Gary LAZAR and Divine Grace Lazar, Debtors. In re CALIFORNIA TARGET ENTERPRISES, INC., et al., Debtors. George E. SCHULMAN, Chapter 7 Trustee, Plaintiff/Petitioner, v. CALIFORNIA STATE WATER RESOURCES CONTROL BOARD, et al., Defendants/Respondents.

United States Bankruptcy Court, C.D. California.

September 3, 1996.

Attorney(s) appearing for the Case

David Gould, Mary Ellen Hogan, McDermott, Will & Emory, Los Angeles, CA, for debtors.

Daniel E. Lungren, Attorney General of the State of California, Charles W. Getz, IV, Assistant Attorney General, William S. Abbey, Deputy Attorney General, Los Angeles, CA, for California State Water Resources Control Board.

OPINION ON MOTION FOR REMAND OR ABSTENTION

SAMUEL L. BUFFORD, Bankruptcy Judge.

I. Introduction

This adversary proceeding raises the issue of whether a chapter 7 trustee can be compelled to litigate in state court the denial of his administrative claim filed against the California Underground Storage Tank Cleanup Fund ("the Fund"), where the denial was based on the prepetition misconduct of the debtors, and the state has filed a claim for unpaid...

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