October Term 2002 · Docket 01-1418
Can a creditor enforce a fraud settlement in bankruptcy?
The dispute centers on whether a creditor can collect a settled fraud debt after a debtor files for bankruptcy.
Verified source milestones
- — An official oral-argument transcript was verified.
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Ms. Blatt argued creditors retain rights to enforce settled fraud debts.
Mr. Ayer outlined four key points for the Court's consideration.
Mr. Goldblatt explained statutory exceptions to bankruptcy discharge.
Mr. Goldblatt stated the preclusion issue was waived in the reply brief.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 17, lines 33-13 — Transcript, file page 17, lines 33-13
- Official Supreme Court Transcript — file page 26, lines 49-33 — Transcript, file page 26, lines 49-33
- Official Supreme Court Transcript — file page 3, lines 17-27 — Transcript, file page 3, lines 17-27
- Official Supreme Court Transcript — file page 3, lines 5-15 — Transcript, file page 3, lines 5-15
- Official Supreme Court Transcript — file page 50, lines 17-37 — Transcript, file page 50, lines 17-37
- Official Supreme Court Transcript — file page 54, lines 33-3 — Transcript, file page 54, lines 33-3
- Official Supreme Court Transcript — file page 57, lines 37-39 — Transcript, file page 57, lines 37-39
A citizen's guide to the whole case
What this case is about
This case tests the scope of bankruptcy discharge exceptions for fraud debts.
Official sources for this section
- Official Supreme Court Transcript — file page 17, lines 33-13 — Transcript, file page 17, lines 33-13
- Official Supreme Court Transcript — file page 26, lines 49-33 — Transcript, file page 26, lines 49-33
- Official Supreme Court Transcript — file page 3, lines 17-27 — Transcript, file page 3, lines 17-27
- Official Supreme Court Transcript — file page 50, lines 17-37 — Transcript, file page 50, lines 17-37
- Official Supreme Court Transcript — file page 54, lines 33-3 — Transcript, file page 54, lines 33-3
How the case got here
The Supreme Court heard oral argument in this case on January 13, 2003.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 5-15 — Transcript, file page 3, lines 5-15
- Official Supreme Court Transcript — file page 57, lines 37-39 — Transcript, file page 57, lines 37-39
What each side wants
the sides that brought the case want to enforce the full settlement amount in bankruptcy.
the opposing sides want the debt discharged under bankruptcy law.
Official sources for this section
- Official Supreme Court Transcript — file page 17, lines 33-13 — Transcript, file page 17, lines 33-13
- Official Supreme Court Transcript — file page 26, lines 49-33 — Transcript, file page 26, lines 49-33
- Official Supreme Court Transcript — file page 3, lines 17-27 — Transcript, file page 3, lines 17-27
- Official Supreme Court Transcript — file page 50, lines 17-37 — Transcript, file page 50, lines 17-37
- Official Supreme Court Transcript — file page 54, lines 33-3 — Transcript, file page 54, lines 33-3
What each side says
the sides that brought the case argue the creditor can establish fraud to defeat discharge.
the opposing sides argue statutory exceptions limit which debts survive bankruptcy.
Official sources for this section
- Official Supreme Court Transcript — file page 17, lines 33-13 — Transcript, file page 17, lines 33-13
- Official Supreme Court Transcript — file page 26, lines 49-33 — Transcript, file page 26, lines 49-33
- Official Supreme Court Transcript — file page 3, lines 17-27 — Transcript, file page 3, lines 17-27
- Official Supreme Court Transcript — file page 50, lines 17-37 — Transcript, file page 50, lines 17-37
- Official Supreme Court Transcript — file page 54, lines 33-3 — Transcript, file page 54, lines 33-3
What the justices asked
Chief Justice Rehnquist asked about the how the case got here of the case.
Official sources for this section
- Official Supreme Court Transcript — file page 57, lines 37-39 — Transcript, file page 57, lines 37-39
Why it matters
Creditors rely on settlements to resolve fraud disputes. Debtors rely on bankruptcy to erase pre-filing obligations. The outcome defines the boundary between these competing rights.
Official sources for this section
- Official Supreme Court Transcript — file page 17, lines 33-13 — Transcript, file page 17, lines 33-13
- Official Supreme Court Transcript — file page 26, lines 49-33 — Transcript, file page 26, lines 49-33
- Official Supreme Court Transcript — file page 3, lines 17-27 — Transcript, file page 3, lines 17-27
- Official Supreme Court Transcript — file page 50, lines 17-37 — Transcript, file page 50, lines 17-37
- Official Supreme Court Transcript — file page 54, lines 33-3 — Transcript, file page 54, lines 33-3
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 5-15 — Transcript, file page 3, lines 5-15
- Official Supreme Court Transcript — file page 57, lines 37-39 — Transcript, file page 57, lines 37-39
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 17, lines 33-13 — Transcript, file page 17, lines 33-13
- Official Supreme Court Transcript — file page 26, lines 49-33 — Transcript, file page 26, lines 49-33
- Official Supreme Court Transcript — file page 3, lines 17-27 — Transcript, file page 3, lines 17-27
- Official Supreme Court Transcript — file page 50, lines 17-37 — Transcript, file page 50, lines 17-37
- Official Supreme Court Transcript — file page 54, lines 33-3 — Transcript, file page 54, lines 33-3
- Official Supreme Court Transcript — file page 17, lines 33-13 — Transcript, file page 17, lines 33-13
- Official Supreme Court Transcript — file page 26, lines 49-33 — Transcript, file page 26, lines 49-33
- Official Supreme Court Transcript — file page 3, lines 17-27 — Transcript, file page 3, lines 17-27
- Official Supreme Court Transcript — file page 50, lines 17-37 — Transcript, file page 50, lines 17-37
- Official Supreme Court Transcript — file page 54, lines 33-3 — Transcript, file page 54, lines 33-3
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.