Supreme Court of the United States

Archer v. Warner

March 31, 2003538 U.S. 314

Summary

The Supreme Court held that a debt arising from a settlement agreement can be nondischargeable under 11 U.S.C. §523(a)(2)(A) because it is for money obtained by fraud, reversing the Fourth Circuit and remanding for further proceedings. Justice Thomas dissented, arguing the settlement and release constitute a novation that severs the fraud nexus, making the debt dischargeable.