Attorneys React To High Court's Bankruptcy Fraud Ruling

May 16, 2016Article
Law 360

Brian Davidoff was quoted by Law360 May 16, 2016 in a round-up of attorney reactions to the U.S. Supreme Court’s decision in Husky International Electronics Inc. v. Ritz with the Court ruling that an actual fraud exception to bankruptcy debt discharge includes fraudulent asset transfers that don't involve a false representation to a creditor. The decision effectively reversed the Fifth Circuit ruling in the case earlier in 2016.

"This will result in a change in practice in the Ninth Circuit where until now the applicable law was established by Turtle Rock Meadows Homeowners Ass’n v. Slyman (In re Slyman), 234 F.3d 1081, 1085 (9th Cir. 2000),” said Davidoff. “Slyman stood for the proposition that a creditor must demonstrate 'misrepresentation, fraudulent omission or deceptive conduct by the debtor' in order to 'prevail on any claim arising under Section 523(a)(2)(A).”