Post-Taggart, Debtors May Face Higher Pleading Standard

Law360 (August 23, 2019, 2:06 PM EDT) -- The recent decision from the United States District Court for the Middle District of Alabama in Moore v. Automotive Finance Corp.[1] demonstrates how the U.S. Supreme Court’s decision this term in Taggart v. Lorenzen[2] means that a complaint can be dismissed for failure to state a claim even if it plausibly alleges a violation of the discharge injunction.

Before turning to the case in question, a brief recap of the Supreme Court’s decision in Taggart is warranted.

The Taggart Decision

In Taggart, the Supreme Court rejected a strict-liability standard for the imposition of contempt for violating the discharge injunction. Instead, the...

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