Latest 3 Cases: In re: National Collegiate Student Loan Trusts (Banking), Abreu v. Superintendent Smithfield SCI (Civil Rights), United States v. ...

Don’t Blame the SCOTUS DACA Ruling for Difficulties Undoing Trump’s Damage

MICHAEL C. DORF

Cornell law professor Michael C. Dorf responds to claims that the U.S. Supreme Court’s decision last term invalidating the Trump administration’s effort to rescind the Deferred Action for Childhood Arrivals (DACA) program license President Trump to take actions that will be difficult for a future Democratic administration to undo. Dorf argues that characterizing the ruling as a win for Trump and his executive power is far-fetched, and we should instead be concerned with the long-lasting damage to the environment and our nation’s foreign policy caused by the Trump administration.

Read More

In re: National Collegiate Student Loan Trusts

Docket: 18-3327

Opinion Date: August 19, 2020

Judge: Thomas L. Ambro

Areas of Law: Banking, Trusts & Estates

Six Delaware statutory Trusts acquired student loans, issued notes for the acquisitions, and pledged the student loans as collateral for the notes. This “securitization” works well when the students do not default. The Trusts initially did not provide for servicing delinquent loans; under a subsequent “Special Servicing Agreement,” U.S. Bank became the Indenture Trustee and the “Special Servicer” but allegedly failed to collect hundreds of millions of dollars in delinquent loans. The holders of the Trusts’ equity ownership interests hired an additional loan servicer, Odyssey, and submitted invoices from Odyssey for payment from the trust estate. The district court held that the Trust documents were not violated by hiring Odyssey and Odyssey’s invoices were payable. The Third Circuit reversed in part. Several provisions of the Odyssey Agreement violate the Trust documents by impermissibly transferring to the Owners of the Trusts rights reserved for the Indenture Trustee. The Odyssey Agreement supplements and modifies several provisions of the Trust documents, requiring consent not obtained from the Indenture Trustee. The court remanded for a determination of whether the Odyssey invoices are nonetheless payable, which may include reconsideration os a self-dealing issue.

Abreu v. Superintendent Smithfield SCI

Docket: 17-2442

Opinion Date: August 19, 2020

Judge: Michael A. Chagares

Areas of Law: Civil Rights, Constitutional Law, Criminal Law, Immigration Law

In 2004, Abreu was convicted in Pennsylvania of 22 drug-related counts and was sentenced to 27-54 years’ imprisonment, to run consecutively to a federal sentence Abreu was already serving. The Superior Court of Pennsylvania affirmed. Abreu later unsuccessfully sought relief under the Pennsylvania Post Conviction Relief Act (PCRA). In 2015, Abreu filed a habeas petition under 28 U.S.C. 2254, claiming that his PCRA counsel’s assistance was ineffective in failing to assert that his trial counsel had rendered ineffective assistance. The district court rejected his claims. The Third Circuit granted a certificate of appealability as to claims that trial counsel performed ineffectively by failing to challenge the admission of grand jury testimony and by failing to seek to strike a police officer’s testimony recounting statements made by others. While Abreu’s appeal was pending, he was released on early parole, subject to a federal removal order, and then removed to the Dominican Republic. His federal conviction (not at issue) permanently bars his reentry. The Third Circuit directed the district court to dismiss Abreu’s petition as moot. Without a collateral consequence of Abreu’s state conviction that can be redressed by a favorable decision on his petition, there is no case or controversy under Article III.

United States v. Seibert

Docket: 19-2400

Opinion Date: August 19, 2020

Judge: Restrepo

Areas of Law: Criminal Law

Seibert pleaded guilty to production and possession of child pornography following a raid in which agents recovered approximately 1,500 images. The Probation Office recommended enhancements under U.S.S.G. 2G2.2(b)(5), which applies “[i]f the defendant engaged in a pattern of activity involving the sexual abuse or exploitation of a minor,” and 4B1.5(b)(1), which applies if “the defendant engaged in a pattern of activity involving prohibited sexual conduct,” resulting in a Guidelines range of 360 months to life imprisonment. After applying the two enhancements and weighing the 18 U.S.C. 3553(a) sentencing factors, the court sentenced Seibert to 360 months’ imprisonment. The Third Circuit affirmed. The Guidelines allow for the simultaneous application of both enhancements to the same conduct; there was no procedural error. The court rejected an argument that application of the section 3553(a) factors led to an unduly harsh sentence because it did not place enough weight on Seibert's personal circumstances, including the mental health, medical, and learning challenges. Seibert submitted a psychological evaluation concluding that he “has the libido of an adult but the mind of a small child and does not have the capacity to use rationality to control his impulses.” The district court acknowledged that evidence but concluded that Seibert’s “family struggles” are not “unusually severe.”