October Term 2015 · Docket 15-145
Does actual fraud require a specific lie to a creditor?
The dispute centers on whether a debtor must prove a specific lie to a creditor to block discharge.
Verified source milestones
- — 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
Mr. Dvoretzky argued Congress added actual fraud to the discharge bar in 1978.
He stated his interpretation gives meaning to that amendment.
Ms. Murphy argued Section 523(a)(2) applies to debts fraudulently induced.
Ms. Harrington argued the lower court erred in requiring intentional misrepresentation.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 10, lines 28-32 — Transcript, file page 10, lines 28-32
- Official Supreme Court Transcript — file page 11, lines 22-34 — Transcript, file page 11, lines 22-34
- Official Supreme Court Transcript — file page 16, lines 50-14 — Transcript, file page 16, lines 50-14
- Official Supreme Court Transcript — file page 24, lines 52-42 — Transcript, file page 24, lines 52-42
- Official Supreme Court Transcript — file page 3, lines 20-10 — Transcript, file page 3, lines 20-10
- Official Supreme Court Transcript — file page 3, lines 8-18 — Transcript, file page 3, lines 8-18
- Official Supreme Court Transcript — file page 4, lines 12-22 — Transcript, file page 4, lines 12-22
- Official Supreme Court Transcript — file page 4, lines 28-34 — Transcript, file page 4, lines 28-34
- Official Supreme Court Transcript — file page 5, lines 30-36 — Transcript, file page 5, lines 30-36
- Official Supreme Court Transcript — file page 5, lines 6-14 — Transcript, file page 5, lines 6-14
- Official Supreme Court Transcript — file page 6, lines 30-38 — Transcript, file page 6, lines 30-38
- Official Supreme Court Transcript — file page 6, lines 8-12 — Transcript, file page 6, lines 8-12
- Official Supreme Court Transcript — file page 7, lines 28-12 — Transcript, file page 7, lines 28-12
- Official Supreme Court Transcript — file page 8, lines 16-46 — Transcript, file page 8, lines 16-46
- Official Supreme Court Transcript — file page 9, lines 16-24 — Transcript, file page 9, lines 16-24
- Official Supreme Court Transcript — file page 9, lines 32-44 — Transcript, file page 9, lines 32-44
A citizen's guide to the whole case
What this case is about
Husky International Electronics seeks to discharge a debt. The creditor argues the debt arose from actual fraud. The lower court required proof of a specific misrepresentation. the side that brought the case argues this requirement is too narrow.
Official sources for this section
- Official Supreme Court Transcript — file page 16, lines 50-14 — Transcript, file page 16, lines 50-14
- Official Supreme Court Transcript — file page 24, lines 52-42 — Transcript, file page 24, lines 52-42
- Official Supreme Court Transcript — file page 3, lines 20-10 — Transcript, file page 3, lines 20-10
How the case got here
The Supreme Court heard oral argument in this case on March 1, 2016.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 8-18 — Transcript, file page 3, lines 8-18
What each side wants
Husky wants the Court to reject the specific misrepresentation requirement.
Ritz wants the Court to keep the specific misrepresentation requirement.
Official sources for this section
- Official Supreme Court Transcript — file page 16, lines 50-14 — Transcript, file page 16, lines 50-14
- Official Supreme Court Transcript — file page 24, lines 52-42 — Transcript, file page 24, lines 52-42
- Official Supreme Court Transcript — file page 3, lines 20-10 — Transcript, file page 3, lines 20-10
What each side says
Husky argues the statute covers any debt obtained by actual fraud.
Ritz argues the statute requires proof of a specific fraudulent inducement.
Official sources for this section
- Official Supreme Court Transcript — file page 16, lines 50-14 — Transcript, file page 16, lines 50-14
- Official Supreme Court Transcript — file page 24, lines 52-42 — Transcript, file page 24, lines 52-42
- Official Supreme Court Transcript — file page 3, lines 20-10 — Transcript, file page 3, lines 20-10
What the justices asked
Justice Breyer asked if the debt belongs to the transferor or the creditor.
Justice Kennedy asked if state law fraud is required for veil piercing.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 28-32 — Transcript, file page 10, lines 28-32
- Official Supreme Court Transcript — file page 11, lines 22-34 — Transcript, file page 11, lines 22-34
- Official Supreme Court Transcript — file page 4, lines 12-22 — Transcript, file page 4, lines 12-22
- Official Supreme Court Transcript — file page 4, lines 28-34 — Transcript, file page 4, lines 28-34
- Official Supreme Court Transcript — file page 5, lines 30-36 — Transcript, file page 5, lines 30-36
- Official Supreme Court Transcript — file page 5, lines 6-14 — Transcript, file page 5, lines 6-14
- Official Supreme Court Transcript — file page 6, lines 30-38 — Transcript, file page 6, lines 30-38
- Official Supreme Court Transcript — file page 6, lines 8-12 — Transcript, file page 6, lines 8-12
- Official Supreme Court Transcript — file page 7, lines 28-12 — Transcript, file page 7, lines 28-12
- Official Supreme Court Transcript — file page 8, lines 16-46 — Transcript, file page 8, lines 16-46
- Official Supreme Court Transcript — file page 9, lines 16-24 — Transcript, file page 9, lines 16-24
- Official Supreme Court Transcript — file page 9, lines 32-44 — Transcript, file page 9, lines 32-44
Why it matters
This case defines the scope of bankruptcy discharge bars. It determines which debts survive bankruptcy proceedings. Creditors rely on this standard to protect their interests. Debtors rely on it to achieve a fresh start.
Official sources for this section
- Official Supreme Court Transcript — file page 16, lines 50-14 — Transcript, file page 16, lines 50-14
- Official Supreme Court Transcript — file page 24, lines 52-42 — Transcript, file page 24, lines 52-42
- Official Supreme Court Transcript — file page 3, lines 20-10 — Transcript, file page 3, lines 20-10
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 10, lines 28-32 — Transcript, file page 10, lines 28-32
- Official Supreme Court Transcript — file page 11, lines 22-34 — Transcript, file page 11, lines 22-34
- Official Supreme Court Transcript — file page 3, lines 8-18 — Transcript, file page 3, lines 8-18
- Official Supreme Court Transcript — file page 4, lines 12-22 — Transcript, file page 4, lines 12-22
- Official Supreme Court Transcript — file page 4, lines 28-34 — Transcript, file page 4, lines 28-34
- Official Supreme Court Transcript — file page 5, lines 30-36 — Transcript, file page 5, lines 30-36
- Official Supreme Court Transcript — file page 5, lines 6-14 — Transcript, file page 5, lines 6-14
- Official Supreme Court Transcript — file page 6, lines 30-38 — Transcript, file page 6, lines 30-38
- Official Supreme Court Transcript — file page 6, lines 8-12 — Transcript, file page 6, lines 8-12
- Official Supreme Court Transcript — file page 7, lines 28-12 — Transcript, file page 7, lines 28-12
- Official Supreme Court Transcript — file page 8, lines 16-46 — Transcript, file page 8, lines 16-46
- Official Supreme Court Transcript — file page 9, lines 16-24 — Transcript, file page 9, lines 16-24
- Official Supreme Court Transcript — file page 9, lines 32-44 — Transcript, file page 9, lines 32-44
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 16, lines 50-14 — Transcript, file page 16, lines 50-14
- Official Supreme Court Transcript — file page 24, lines 52-42 — Transcript, file page 24, lines 52-42
- Official Supreme Court Transcript — file page 3, lines 20-10 — Transcript, file page 3, lines 20-10
- Official Supreme Court Transcript — file page 16, lines 50-14 — Transcript, file page 16, lines 50-14
- Official Supreme Court Transcript — file page 24, lines 52-42 — Transcript, file page 24, lines 52-42
- Official Supreme Court Transcript — file page 3, lines 20-10 — Transcript, file page 3, lines 20-10
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.