Cite as: 538 U. S. 314 (2003)
Thomas, J., dissenting
cifically excepted from the releases, supra, at 317; post, at 325. The Court of Appeals remains free, on remand, to determine whether such questions were properly raised or preserved, and, if so, to decide them.
We conclude that the Archers' settlement agreement and releases may have worked a kind of novation, but that fact does not bar the Archers from showing that the settlement debt arose out of "false pretenses, a false representation, or actual fraud," and consequently is nondischargeable, 11 U. S. C. § 523(a)(2)(A). We reverse the Court of Appeals' judgment to the contrary. And we remand this case for further proceedings consistent with this opinion.
It is so ordered.
Justice Thomas, with whom Justice Stevens joins, dissenting.
Section 523(a)(2) of the Bankruptcy Code excepts from discharge "any debt . . . for money, property, [or] services, . . . to the extent obtained by . . . false pretenses, a false representation, or actual fraud." 11 U. S. C. § 523(a)(2)(A) (emphasis added). The Court holds that a debt owed under a settlement agreement was "obtained by" fraud even though the debt resulted from a contractual arrangement pursuant to which the parties agreed, using the broadest language possible, to release one another from "any and every right, claim, or demand . . . arising out of" a fraud action filed by petitioners in North Carolina state court. App. 67. Because the Court's conclusion is supported neither by the text of the Bankruptcy Code nor by any of the agreements executed by the parties, I respectfully dissent.
The Court begins its description of this case with the observation that "the settlement agreement does not resolve the issue of fraud, but provides that B will pay A a fixed sum." Ante, at 317 (emphasis added). Based on that erroneous premise, the Court goes on to find that there is "no significant difference between Brown [v. Felsen, 442 U. S. 127
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