The Supreme Court ruled unanimously on Feb. 22 that a woman whose husband defrauded a man who bought their San Francisco home is financially responsible even though she did not participate in the fraudulent scheme.
Kate Bartenwerfer, who filed for bankruptcy after the ill-fated real estate deal, appealed after the U.S. Court of Appeals for the 9th Circuit ruled she cannot escape from the debt that is non-dischargeable in a bankruptcy proceeding.
The couple had purchased and renovated a house. They moved out, and the husband, David Bartenwerfer, handled the sale of the house with his wife’s permission but without any substantial involvement on her part. Without the wife’s knowledge, the husband made false representations to the buyer, the respondent Kieran Buckley….
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