The Supreme Court heard oral argument yesterday in Taggart v. Lorenzen, 18-489 (Sup. Ct.), to decide whether a good faith belief that a debt was not discharged precludes holding the creditor in civil contempt, according to an analysis by ABI's Bill Rochelle. The Court will choose among three tests, one proposed by the debtor, one by the U.S. Solicitor General and another by the creditor. Not surprisingly, the debtor argued for strict liability where the creditor’s good faith is no defense. The Solicitor General proposed a purely objective test but said the government would go along with the creditor’s objective test that also considers good faith.
