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Kenneth N. Klee and Whitman L. Holt on Supreme Court's Holding in Taggart v. Lorenzen

LexisNexis Emerging Issues Analysis, 2019 Emerging Issues 8750
June 2019

In a 9–0 decision authored by Justice Breyer, the Supreme Court of the United States considers the legal standard for holding creditors in civil contempt when creditors attempt to collect in violation of a bankruptcy discharge order and holds that contempt sanctions may be appropriate “when there is no objectively reasonable basis for concluding that the creditor’s conduct might be lawful under the discharge order.”

This commentary analyzes the holding and implications of the Taggart opinion.