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Supreme Court to Hear Oral Argument Tomorrow in Husky International Electronics, Inc. v. Ritz

Submitted by jhartgen@abi.org on

The Supreme Court will hear oral argument tomorrow in Husky International Electronics, Inc. v. Ritz, No. 15-145. The issue in the case is whether the “actual fraud” bar to discharge under Section 523(a)(2)(A) of the Bankruptcy Code applies only when the debtor has made a false representation, or whether the bar also applies when the debtor has deliberately obtained money through a fraudulent-transfer scheme that was actually intended to cheat a creditor.

Blixseth Jailed Eight Months and Counting for Civil Contempt

Submitted by jhartgen@abi.org on

Timothy Blixseth, former owner of the bankrupt Yellowstone Mountain Club LLC, has been jailed for almost nine months — not for a crime, but for contempt from violating a bankruptcy court injunction and subsequent district court orders, according to a report today from ABI Editor at Large Bill Rochelle. Unless the Ninth Circuit intervenes, Blixseth’s incarceration could last a year or more; District Judge Sam E. Haddon of Butte, Mont., handed down a 40-page opinion on Dec. 30 explaining why Blixseth is still in civil contempt of an order directing him to account for how he spent $13.8 million obtained from the sale of a Mexican resort in violation of a bankruptcy court order.