Bartenwerfer v. Buckley
Bartenwerfer v. Buckley | |
---|---|
Holding | |
Section 523(a)(2)(A) precludes Kate Bartenwerfer from discharging in bankruptcy a debt obtained by fraud, regardless of her own culpability. | |
Court membership | |
| |
Case opinions | |
Majority | Barrett, joined by unanimous |
Concurrence | Sotomayor, joined by Jackson |
Laws applied | |
United States Bankruptcy Code |
Bartenwerfer v. Buckley, 598 U.S. 69 (2023), is a
Background
In 2012, the petitioner, Kate Bartenwerfer, and her husband lost a jury verdict after allegedly failing to disclose defects in a house that they sold in
In 2021, the
The petitioner sought certiorari to the Supreme Court later that year, and certiorari was granted in 2022.[5]
Supreme Court
Oral argument
The Supreme Court heard oral argument on December 6, 2022. The justices focused on the language of 11 U.S.C § 523(a)(2)(A), which excepts from discharge debts incurred by "money... obtained by... actual fraud."[6] A SCOTUSblog analyst argued that the justices' questions to counsel for the petitioner were more hostile than those to counsel for the respondent or the United States; they drew a distinction between the fraudulent origin of a debt and whether the debtor knows of that fraud.[7]
Decision
On February 22, 2023, the Supreme Court unanimously held that fraudulently obtained debts cannot be discharged in bankruptcy.[8] In so holding, the Court reasoned that the exception is triggered by whether the money was obtained by fraud; the question of who committed the fraud is irrelevant.[9]
In her concurrence, Justice Sotomayor argued that the decision should apply only to debts obtained through the fraud of a partner or agent of the bankrupt.[8]
Representation
The petitioner was represented by Sarah Harris and Lisa Blatt of Williams & Connolly; Iain Macdonald of Macdonald Fernandez; and Reno Fernandez of the Complex Appellate Litigation Group.[10]
The respondent was represented by Zachary Tripp of Weil, Gotshal & Manges; and Janet Marie Brayer of the Law Offices of Janey Brayer.[11]
References
- ^ a b Wolf, Alex; Nani, James. "Wiping Away Debts From Others' Fraud Weighed by Supreme Court". news.bloomberglaw.com. Bloomberg Law. Retrieved December 11, 2022.
- ^ a b In re Bartenwerfer, 860 Fed. Appx. 544.
- ^ a b AARP Foundation. "In for a Dime, In for a Dollar? Can a Partner Escape Liability in Bankruptcy for a Fraud by Blaming Another Partner?". AARP Foundation. Retrieved December 11, 2022.
- ^ Chutchian, Maria (May 2, 2022). "U.S. Supreme Court to weigh whether wife liable in bankruptcy for husband's fraud". Reuters. Retrieved December 11, 2022.
- ^ SCOTUSblog. "Bartenwerfer v. Buckley". SCOTUSblog. Retrieved December 11, 2022.
- ^
- ^ Mann, Ronald (December 7, 2022). "Justices debate bankruptcy treatment of debts incurred by fraud". SCOTUSblog. Retrieved December 11, 2022.
- ^ a b Bartenwerfer v. Buckley, 598 U.S. __ (2023).
- ^ Mann, Ronald (February 23, 2023). "Justices narrow bankruptcy relief from debts incurred by fraud". SCOTUSblog. Retrieved February 24, 2023.
- ^ "Reply Brief for Petitioner" (PDF). Bartenwerfer v. Buckley, Sup. Ct. No. 21-908.
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: CS1 maint: others (link) - ^ Knauth, Dietrich (December 6, 2022). "Justices skeptical of bankruptcy protection for 'unwitting' beneficiaries of fraud". Reuters.
External links
- Text of Bartenwerfer v. Buckley, 598 U.S. 69 (2023) is available from: Google Scholar Justia Oyez (oral argument audio) Supreme Court (slip opinion) Supreme Court (preliminary print)