Mayor of Baltimore v. West Virginia (In re Eagle-Picher Industries, Inc.)

OPINION

RUSSELL, District Judge.

This is an appeal from a bankruptcy court order granting Appellees West Virginia, et al., preferred status in the disposition of a settlement trust corpus funded by Debtor Eagle-Picher Industries, Inc., despite Appellees’ failure to comply fully with a mandatory notification provision. While Appellees were required to give notice to three entities as a prerequisite to preferred status, they only notified two of the three. Notwithstanding this failure, the bankruptcy court determined that Ap-pellees were entitled to preferred status in the trust dispensation…