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Bankruptcy Keyed to Bussel, 12th Ed.
Taggart v. Lorenzen
Citation:
139 S. Ct. 1795 (2019)Facts
Bradley Taggart owned an interest in Sherwood Park Business Center. Before Taggart’s bankruptcy filing, Sherwood sued him in Oregon state court for breaching the company’s operating agreement. During this litigation, Taggart filed for Chapter 7 bankruptcy and received a discharge order. After the discharge, the state court entered judgment against Taggart, and Sherwood sought attorney’s fees incurred after Taggart’s bankruptcy petition. Under Ninth Circuit precedent in In re Ybarra, such postpetition fees would normally be discharged unless the debtor “returned to the fray” after filing for bankruptcy. Sherwood claimed Taggart had done so, making him liable for the fees. Taggart returned to bankruptcy court, arguing he had not “returned to the fray” and that Sherwood should be held in contempt for violating his discharge order. After conflicting rulings at various levels, the case reached the Supreme Court to determine the appropriate standard for holding a creditor in civil contempt for violating a discharge order.
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