Can Obeying a Court Order Prevent Contempt Sanctions?
Let’s say you sue a defendant in state court for injunctive relief. The defendant then files bankruptcy and receives a discharge. Then, the state court says you can proceed, despite the discharge. And so you do. Then, the defendant seeks contempt sanctions in bankruptcy court for a discharge injunction violation. Can you be sanctioned, if the state court was wrong? Such is the essence of what’s before the Supreme Court in Taggart v. Lorenzen.
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