civil contempt

Issues

Does a creditor’s good-faith belief that an attempt to collect non-dischargeable debt does not violate a bankruptcy court’s discharge order protect the creditor from contempt?

Court below

United States Court of Appeals for the Ninth Circuit

This case asks the Supreme Court to determine what role, if any, good-faith belief plays in relation to contempt and bankruptcy discharge orders. Petitioner Bradley Weston Taggart contends that the bankruptcy code does not afford protection for creditors who violate a discharge order, even when a creditor holds a good-faith belief that his or her attempt at collection is permissible under the law. Respondents Shelley A. Lorenzen and others counter that the bankruptcy code must consider a creditor’s good-faith belief, because otherwise creditors would be held in contempt for minor violations that make it harder for them to seek collection of non-dischargeable debt. The outcome of this case will have significant implications on the limits of creditor liability and debtor protection in the discharge context as well as implications for legal advocacy, state taxation, and the economy.

Questions as Framed for the Court by the Parties

Whether, under the Bankruptcy Code, a creditor’s good-faith belief that the discharge injunction does not apply precludes a finding of civil contempt.

Petitioner Bradley Weston Taggart, a real estate developer, owned a twenty-five percent interest in Sherwood Park Business Center (“SPBC”). Lorenzen v. Taggart, 888 F.3d 438, 440 (9th Cir. 2018). In 2007, Taggart transferred his interest in SPBC to his lawyer, John Berman. Id.

Written by

llozada

Jared Ham

Edited by

awong

Additional Resources

Daniel Gill, SCOTUS to Consider Creditors’ Collection Acts Post-Bankruptcy, Bloomberg Law (Jan. 4, 2019).
Amy Howe, More on Today’s Orders, SCOTUSblog (Jan. 4, 2019).
Sarah B. Boehm and Patrick L. Hayden, Circuit Split: Should Subjective Intent Preclude a Finding of Civil Contempt in a Discharge Injunction Violation Case, Lexology (Dec. 5, 2018).

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Turner v. Rogers

Issues

1. Does an indigent defendant have the right to appointed counsel at a civil contempt proceeding that could result in incarceration?

2. Does the Supreme Court have jurisdiction to review the South Carolina Supreme Court's decision that such a defendant does not have a right to appointed counsel?

Court below

South Carolina Supreme Court

By the beginning of 2008, Michael Turner was six thousand dollars behind in his child support payments. A South Carolina family court eventually ordered Turner to appear to explain his failure to make any payments for the past year and a half. Turner alleged his personal and physical problems rendered him unable to pay. The family court imposed civil contempt sanctions as a result of Turner’s failure to comply with the earlier court order to pay child support. Turner appealed his twelve-month sentence, arguing that because there was a possibility that he would face imprisonment, the court should have provided him with counsel. The Supreme Court’s decision will likely determine whether indigent defendants in civil cases are entitled to representation where there is a possibility of incarceration, although the Court could possibly determine that it does not have jurisdiction to hear the case.

Questions as Framed for the Court by the Parties

1. Whether the Supreme Court of South Carolina erred in holding—in conflict with twenty-two federal courts of appeals and state courts of last resort—that an indigent defendant has no constitutional right to appointed counsel at a civil contempt proceeding that results in his incarceration.

2. Whether this Court has jurisdiction to review the decision of the Supreme Court of South Carolina

In January 2008, a South Carolina family court ordered Petitioner Michael Turner to appear in court to explain his failure to pay six thousand dollars in child support. See Price v. Turner, 691 S.E.2d 470, 471 (S.C.