October Term 2018 · Docket 18-489
Does a creditor's good faith belief excuse a bankruptcy violation?
Creditors argue good faith excuses bankruptcy violations. Debtors argue this rule ignores court orders.
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
The creditor's lawyer argued good faith belief blocks contempt liability.
The debtor's lawyer argued good faith does not excuse ignoring orders.
Justice Alito questioned if a good faith belief prevents a violation.
Justice Sotomayor asked if debtors must use safe harbors to avoid liability.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 10, lines 24-26 — Transcript, file page 10, lines 24-26
- Official Supreme Court Transcript — file page 10, lines 29-34 — Transcript, file page 10, lines 29-34
- Official Supreme Court Transcript — file page 11, lines 17-32 — Transcript, file page 11, lines 17-32
- Official Supreme Court Transcript — file page 11, lines 35-36 — Transcript, file page 11, lines 35-36
- Official Supreme Court Transcript — file page 12, lines 20-26 — Transcript, file page 12, lines 20-26
- Official Supreme Court Transcript — file page 29, lines 30-35 — Transcript, file page 29, lines 30-35
- Official Supreme Court Transcript — file page 4, lines 16-35 — Transcript, file page 4, lines 16-35
- Official Supreme Court Transcript — file page 4, lines 9-15 — Transcript, file page 4, lines 9-15
- Official Supreme Court Transcript — file page 41, lines 20-31 — Transcript, file page 41, lines 20-31
- Official Supreme Court Transcript — file page 6, lines 11-14 — Transcript, file page 6, lines 11-14
- Official Supreme Court Transcript — file page 6, lines 26-31 — Transcript, file page 6, lines 26-31
- Official Supreme Court Transcript — file page 65, lines 36-19 — Transcript, file page 65, lines 36-19
- Official Supreme Court Transcript — file page 69, lines 20-22 — Transcript, file page 69, lines 20-22
- Official Supreme Court Transcript — file page 8, lines 8-32 — Transcript, file page 8, lines 8-32
- Official Supreme Court Transcript — file page 9, lines 10-12 — Transcript, file page 9, lines 10-12
- Official Supreme Court Transcript — file page 9, lines 15-19 — Transcript, file page 9, lines 15-19
- Official Supreme Court Transcript — file page 9, lines 21-22 — Transcript, file page 9, lines 21-22
- Official Supreme Court Transcript — file page 9, lines 8-8 — Transcript, file page 9, lines 8-8
A citizen's guide to the whole case
What this case is about
This case tests whether a creditor's honest belief excuses a bankruptcy violation. The lower court found a violation despite that belief. The Supreme Court must decide if good faith blocks liability.
Official sources for this section
- Official Supreme Court Transcript — file page 29, lines 30-35 — Transcript, file page 29, lines 30-35
- Official Supreme Court Transcript — file page 4, lines 16-35 — Transcript, file page 4, lines 16-35
- Official Supreme Court Transcript — file page 41, lines 20-31 — Transcript, file page 41, lines 20-31
- Official Supreme Court Transcript — file page 65, lines 36-19 — Transcript, file page 65, lines 36-19
How the case got here
The Supreme Court heard oral argument in this case on April 24, 2019.
Official sources for this section
- Official Supreme Court Transcript — file page 4, lines 9-15 — Transcript, file page 4, lines 9-15
- Official Supreme Court Transcript — file page 69, lines 20-22 — Transcript, file page 69, lines 20-22
What each side wants
The creditor wants a good faith belief to excuse bankruptcy violations.
The debtor wants courts to punish violations regardless of intent.
Official sources for this section
- Official Supreme Court Transcript — file page 29, lines 30-35 — Transcript, file page 29, lines 30-35
- Official Supreme Court Transcript — file page 4, lines 16-35 — Transcript, file page 4, lines 16-35
- Official Supreme Court Transcript — file page 41, lines 20-31 — Transcript, file page 41, lines 20-31
- Official Supreme Court Transcript — file page 65, lines 36-19 — Transcript, file page 65, lines 36-19
What each side says
The creditor argues good faith belief prevents contempt liability.
The debtor argues good faith does not excuse ignoring court orders.
Official sources for this section
- Official Supreme Court Transcript — file page 29, lines 30-35 — Transcript, file page 29, lines 30-35
- Official Supreme Court Transcript — file page 4, lines 16-35 — Transcript, file page 4, lines 16-35
- Official Supreme Court Transcript — file page 41, lines 20-31 — Transcript, file page 41, lines 20-31
- Official Supreme Court Transcript — file page 65, lines 36-19 — Transcript, file page 65, lines 36-19
What the justices asked
Justice Alito asked if a good faith belief prevents a violation.
Justice Sotomayor asked if debtors must use safe harbors to avoid liability.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 24-26 — Transcript, file page 10, lines 24-26
- Official Supreme Court Transcript — file page 10, lines 29-34 — Transcript, file page 10, lines 29-34
- Official Supreme Court Transcript — file page 11, lines 17-32 — Transcript, file page 11, lines 17-32
- Official Supreme Court Transcript — file page 11, lines 35-36 — Transcript, file page 11, lines 35-36
- Official Supreme Court Transcript — file page 12, lines 20-26 — Transcript, file page 12, lines 20-26
- Official Supreme Court Transcript — file page 6, lines 11-14 — Transcript, file page 6, lines 11-14
- Official Supreme Court Transcript — file page 6, lines 26-31 — Transcript, file page 6, lines 26-31
- Official Supreme Court Transcript — file page 69, lines 20-22 — Transcript, file page 69, lines 20-22
- Official Supreme Court Transcript — file page 8, lines 8-32 — Transcript, file page 8, lines 8-32
- Official Supreme Court Transcript — file page 9, lines 10-12 — Transcript, file page 9, lines 10-12
- Official Supreme Court Transcript — file page 9, lines 15-19 — Transcript, file page 9, lines 15-19
- Official Supreme Court Transcript — file page 9, lines 21-22 — Transcript, file page 9, lines 21-22
- Official Supreme Court Transcript — file page 9, lines 8-8 — Transcript, file page 9, lines 8-8
Why it matters
This dispute defines the limits of creditor power. It determines whether honest mistakes excuse legal violations. It shapes how courts enforce bankruptcy orders. It affects the balance between debtor rights and creditor interests.
Official sources for this section
- Official Supreme Court Transcript — file page 29, lines 30-35 — Transcript, file page 29, lines 30-35
- Official Supreme Court Transcript — file page 4, lines 16-35 — Transcript, file page 4, lines 16-35
- Official Supreme Court Transcript — file page 41, lines 20-31 — Transcript, file page 41, lines 20-31
- Official Supreme Court Transcript — file page 65, lines 36-19 — Transcript, file page 65, lines 36-19
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 24-26 — Transcript, file page 10, lines 24-26
- Official Supreme Court Transcript — file page 10, lines 29-34 — Transcript, file page 10, lines 29-34
- Official Supreme Court Transcript — file page 11, lines 17-32 — Transcript, file page 11, lines 17-32
- Official Supreme Court Transcript — file page 11, lines 35-36 — Transcript, file page 11, lines 35-36
- Official Supreme Court Transcript — file page 12, lines 20-26 — Transcript, file page 12, lines 20-26
- Official Supreme Court Transcript — file page 4, lines 9-15 — Transcript, file page 4, lines 9-15
- Official Supreme Court Transcript — file page 6, lines 11-14 — Transcript, file page 6, lines 11-14
- Official Supreme Court Transcript — file page 6, lines 26-31 — Transcript, file page 6, lines 26-31
- Official Supreme Court Transcript — file page 69, lines 20-22 — Transcript, file page 69, lines 20-22
- Official Supreme Court Transcript — file page 8, lines 8-32 — Transcript, file page 8, lines 8-32
- Official Supreme Court Transcript — file page 9, lines 10-12 — Transcript, file page 9, lines 10-12
- Official Supreme Court Transcript — file page 9, lines 15-19 — Transcript, file page 9, lines 15-19
- Official Supreme Court Transcript — file page 9, lines 21-22 — Transcript, file page 9, lines 21-22
- Official Supreme Court Transcript — file page 9, lines 8-8 — Transcript, file page 9, lines 8-8
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 29, lines 30-35 — Transcript, file page 29, lines 30-35
- Official Supreme Court Transcript — file page 4, lines 16-35 — Transcript, file page 4, lines 16-35
- Official Supreme Court Transcript — file page 41, lines 20-31 — Transcript, file page 41, lines 20-31
- Official Supreme Court Transcript — file page 65, lines 36-19 — Transcript, file page 65, lines 36-19
- Official Supreme Court Transcript — file page 29, lines 30-35 — Transcript, file page 29, lines 30-35
- Official Supreme Court Transcript — file page 4, lines 16-35 — Transcript, file page 4, lines 16-35
- Official Supreme Court Transcript — file page 41, lines 20-31 — Transcript, file page 41, lines 20-31
- Official Supreme Court Transcript — file page 65, lines 36-19 — Transcript, file page 65, lines 36-19
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.