False asset claims in bankruptcy
Lamar, Archer & Cofrin, LLP v. Appling
In brief
The Supreme Court agreed with the appeals court (affirmed), leaving its ruling in place in Appling’s case.
- Where it stands
- Decided
Decided 9-0 · June 4, 2018 · Opinion by Justice Sotomayor
- What it’s about
- Appling orally told Lamar, Archer & Cofrin that an expected tax refund would pay his legal fees; the firm challenged whether his debt could be erased in bankruptcy.
- Who it affects
- The appeals court’s ruling in Appling’s dispute with the law firm remains in place.
Summary: written with AI from the case record.
What it's about
The Court ruled that a statement about one asset can count when it bears directly on the debtor’s overall finances, and upheld the appeals court’s ruling for Appling.
Appling orally told the law firm that an expected tax refund would pay his legal fees. The firm challenged whether the debt could be wiped out in bankruptcy.
The dispute arose under a federal Bankruptcy Code provision concerning statements about a debtor’s financial condition.
Question presented
Can a statement regarding a specific asset be a “statement respecting the debtor’s . . . financial condition” under section 523(a)(2)(B) of the Bankruptcy Code, and if so, when?
What the Court decided
Holding
Adjudged to be AFFIRMED. Sotomayor, J., delivered the opinion of the Court, in which Roberts, C. J., and Kennedy, Ginsburg, Breyer, and Kagan, JJ., joined, and in which Thomas, Alito, and Gorsuch, JJ., joined, as to all but Part III-B.
- Result
- Affirmed
The vote
What's next
The Supreme Court has completed its review, and the appeals court’s ruling remains in place.
Documents
Docket activity
New analysis added
AI analysis generated: Case Briefing
AI analysis generated: Decision Record
Case data updated: summary, question_presented, generation_metadata
Case data updated: question_presented, extraction_metadata
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Opinion added: Appling
Opinion added: opinion
Brief added: Questions Presented
Sources
Primary materials plus reporting. Best-effort analysis: this explainer relies on a mix of primary materials and trusted secondary sources. Official filings and opinions remain authoritative.