After Bradley Taggart was civilly sued for violating a business operating agreement, but before the case went to trial, he filed for Chapter 7 bankruptcy and received a discharge. After the discharge was granted, the civil suit recommenced and Taggart lost. The winners sought their attorneys’ fees incurred after Taggart’s petition was filed, which normally were discharged unless Taggart had returned to the fray after filing for bankruptcy. Ultimately, the bankruptcy court held the winners in civil contempt for violating the bankruptcy discharge, applying a strict liability standard. On appeal, the sanctions were vacated under the Ninth Circuit’s view that the winners had a subjective good faith belief that the discharge did not apply to their claim for fees. In assessing these conflicting standards of review, the Court, in a unanimous opinion by Justice Breyer, reversed, holding that a creditor may be held in civil contempt for violating a discharge order if the is “no fair ground of doubt as to whether the order barred the creditor’s conduct”—also phrased as whether the creditor had “no objectively reasonable basis” for its actions. The Court reasoned that discharge orders function as injunctions, and thus imported the standard for contempt sanctions against violators of injunctions into this area. The case was remanded for further proceedings. A link to the opinion in Taggart v. Lorenzen is here.
SCOTUS Opinion: Court Sets “No Objectively Reasonable Basis” Standard For Violation Of Bankruptcy Discharge Orders
Contributors
- Nathan J. Bresee
- Susan Knell Bumbalo
- Arthur D. Burger
- David H. Cox
- Crystal S. Deese
- Pamela J. Diedrich
- Christopher P. Ferragamo
- Christopher A. Glaser
- Sarah E. Godfrey
- Peter J. Jenkins
- Roy L. Kaufmann
- David L. Kelleher
- Robert N. Kelly
- Caroline Y. Lee-Ghosal
- Erica L. Litovitz
- David MacMillan
- John J. Matteo
- Selena A. Motley
- David A. Rahnis
- Adam W. Smith
- Brian W. Thompson
- Kristen C. Vine
- Mitchell B. Weitzman
Categories
- COVID-19 (51)
- Diversity and Inclusion (5)
- Video Content (5)
- The Women's Initiative (2)
- Education (2)
- Court Case (199)
- Supreme Court (252)
- Litigation (129)
- News (175)
- General Litigation & Trial Practice (174)
- Real Estate (110)
- Tax Law (30)
- Business Law (31)
- DC Laws (21)
- Professional Responsibility (20)
- Business and Tax Law (20)
- Health Law (37)
- Taxes + IRS (20)
- Legislation (15)
- Employment Law (24)
- Insurance Coverage (28)
- Virginia Supreme Court (12)
- Tenant Rights (8)
- Maryland Courts (21)
- MD Appeals (11)
- DC Court of Appeals (8)
- DC Zoning (7)
- Foreclosure (6)
- Trusts & Estates (10)
- Uncategorized (6)
- bankruptcy (6)
- Condos and Coops (7)
- DC Recorder of Deeds (5)
- fair housing (4)
- Maryland Court of Special Appeals (7)
- Title Insurance (9)
- TOPA (4)
- Commercial Leasing (3)
- fair housing hoa (3)
- Montgomery County Maryland (3)
- Mortgage (2)
- Proposed Rules (2)
- Tax Sales (3)
- US. Court of Appeals for the Fourth Circuit (3)
- GCAAR (1)
- Judicial Foreclosure (1)
- Lis Pendens (1)
- Proposed Legislation (3)
Tags
Advocate Health Care Network v. Stapleton
Ake v. Oklahoma
Angel v. Commonwealth
bevins action
biologics
Biologics Price Competition and Innovation Act of 2009
biopharma
biosimilars
Bivens v. Six Unknown Fed. Narcotics Agents
Bristol-Myers Squibb Co. v. Superior Court of Cal.
condos
coops
DC
dc topa rights
DC Water
District Of Columbia Water And Sewer Authority
Emotional support animals
Employee Retirement Income Security Act
Equal Credit Opportunity Act
ERISA
facebook
FDA
First Amendment Law
First Amendment Protection
Graham v. Florida
Juvenile Punishment Standards
mental health
Microsoft Corp. v. Baker
museum square tenants association
Packingham v. North Carolina
patent holder
psychiatric assistance defendant cases
Sandoz Inc. v. Amgen Inc.
San Francisco City
scotus
September 11 Detainees
social media
Supreme Court
Supreme Court decisions
The Lanham Act
TOPA
Trademarks
U.S. Supreme Court
Virginia v. LeBlanc
Ziglar v. Abbasi
Archives
- August 2024 (3)
- July 2024 (1)
- June 2024 (1)
- May 2024 (2)
- April 2024 (2)
- February 2024 (2)
- January 2024 (3)
- December 2023 (5)
- November 2023 (2)
- October 2023 (2)
- September 2023 (3)
- August 2023 (2)
- July 2023 (1)
- June 2023 (2)
- May 2023 (3)
- April 2023 (2)
- March 2023 (3)
- February 2023 (2)
- January 2023 (4)
- December 2022 (5)
- November 2022 (6)
- August 2022 (5)
- July 2022 (2)
- June 2022 (2)
- May 2022 (2)
- April 2022 (4)
- March 2022 (5)
- February 2022 (4)
- January 2022 (8)
- December 2021 (4)
- November 2021 (3)
- October 2021 (5)
- September 2021 (5)
- August 2021 (1)
- July 2021 (11)
- June 2021 (26)
- May 2021 (11)
- April 2021 (14)
- March 2021 (11)
- February 2021 (8)
- January 2021 (2)
- December 2020 (13)
- November 2020 (5)
- October 2020 (3)
- September 2020 (4)
- August 2020 (2)
- July 2020 (8)
- June 2020 (20)
- May 2020 (17)
- April 2020 (24)
- March 2020 (14)
- February 2020 (11)
- January 2020 (4)
- December 2019 (5)
- November 2019 (3)
- October 2019 (1)
- September 2019 (1)
- August 2019 (7)
- July 2019 (2)
- June 2019 (31)
- May 2019 (13)
- April 2019 (11)
- March 2019 (18)
- February 2019 (12)
- January 2019 (10)
- December 2018 (2)
- November 2018 (3)
- October 2018 (1)
- September 2018 (5)
- August 2018 (4)
- July 2018 (2)
- June 2018 (35)
- May 2018 (12)
- April 2018 (5)
- March 2018 (13)
- February 2018 (6)
- January 2018 (5)
- November 2017 (4)
- October 2017 (1)
- September 2017 (2)
- August 2017 (4)
- July 2017 (4)
- June 2017 (15)
- April 2017 (2)
- February 2017 (2)
- November 2016 (1)
- September 2016 (3)
- July 2016 (1)
- June 2016 (1)
- March 2016 (3)
- February 2016 (1)
- January 2016 (1)
- October 2015 (2)
- September 2015 (3)
- August 2015 (2)
- July 2015 (3)
- June 2015 (7)
- May 2015 (2)
- April 2015 (2)
- March 2015 (3)
- February 2015 (5)
- January 2015 (2)
- November 2014 (6)
- September 2014 (2)
- April 2014 (2)