Sanctions order against Sallie Mae!

We have sued Sallie Mae on the basis of the holder clause described in my previous post.  In our judgment, Sallie Mae was extremely uncooperative in producing documents.  We were unable to get a clear answer on the seemingly simple question of identifying the holders of the involved student loans.  If you don’t know who the holder is, you can’t assert your claims and defenses against it.

After dealing with this difficulty for over a year, we came to believe that Sallie Mae was deliberately misleading us about the identity of the holders.  We filed a motion for sanctions, seeking not only an order requiring Sallie Mae to clearly identify the holders, but also requiring it to produce a witness to testify about them.  The Court granted our motion on March 21, and filed the official order on April 9.  It also required Sallie Mae to pay the attorneys’ fees we incurred in trying to get this information!  Check this out:  Order Granting Sanctions Against Sallie Mae.

It’s not often that you get an order with language this strong:  “This Court finds that Defendant Sallie Mae and its Counsel, Ms. Simonetti, made false and misleading statements regarding material facts in this case in an effort to have the case against Sallie Mae dismissed. When making such assertions, counsel has a duty to make certain that such statements are true and accurate.”

The moral of the story is that if you persevere, you can prevail!

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