Edward S. Cohen v. Hilda De La Cruz et al. (523 U.S. 213)
U.S. Supreme Court · decided March 24, 1998 · Supreme Court Database (Spaeth)
- Citation
- 523 U.S. 213 · 118 S. Ct. 1212
- Decided
- March 24, 1998
- Term
- October Term 1997
- Vote
- 9–0
- Majority author
- Justice O'Connor
- Issue area
- Economic Activity
- Disposition
- Affirmed
- Outcome
- Petitioning party lost
- Ideological direction
- Conservative
Opinion excerpt
Justice O’Connor delivered the opinion of the Court. Section 523(a)(2)(A) of the Bankruptcy Code (Code) excepts from discharge in bankruptcy “any debt... for money, property, services, or an extension, renewal, or refinancing of credit, to the extent obtained by... false pretenses, a false representation, or actual fraud.” 11 U. S. C. § 523(a)(2)(A). The issue in this case is whether § 523(a)(2)(A) bars the discharge of treble damages awarded on account of the debtor’s fraudulent acquisition of “money, property, services, or . . . credit,” or whether the exception only encompasses the value of the “money, property, services, or . . . credit” the debtor obtains through fraud. We hold that § 523(a)(2)(A) prevents the discharge of all liability arising from fraud, and that an award of treble damages therefore falls within the scope of the exception. I Petitioner owned several residential properties in and around Hoboken, New Jersey, one of which was subject to a local rent control ordinance. In 1989, the Hoboken Rent Control Administrator determined that petitioner had been charging rents above the levels permitted by the ordinance, and ordered him to refund to the affected tenants, who are respondents in this Court, $31,382.50 in excess rents charged. Petitioner did not comply with the order. Petitioner subsequently filed for relief under Chapter 7 of the Bankruptcy Code,…
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