Wednesday, January 27, 2010

Dispute Resolution Process

I have noticed that the settlement administrator, counsel for SLX and class counsel have not yet resolved any of the disputes that have arisen so far regarding my clients' ratings. Instead, my clients get e-mails back from silverstatesettlement@gardencitygroup.com saying only that "we are investigating" or "the investigation is continuing." Many of my clients are concerned that these disputes will not be resolved before the February 13, 2010 deadline. It is now apparent that some of these disputes will not be resolved until after the February 13, 2010 deadline. I discussed this matter yesterday and today with class counsel Andy August and Kevin Rooney. Andy August assured me that the Settlement Administrator, counsel for SLX and Class Counsel are in the process of resolving the disputes that have been submitted regarding the number of certifications and the incorrect assignment to the settlement subclasses. There is a detailed settlement dispute process outlined in the Settlement Agreement. It generally works as follows:

1. Student’s Notice states more certifications than actually received while at Silver State (i.e., includes other certifications obtained before or after attendance at SSH);
2. Student contacts settlementquestions@gmail.com and is directed to follow instructions on the FAQs by submitting appropriate evidence to the Settlement Administrator (with a cover letter signed “under penalty of perjury”);
3. Student sends information and cover letter to the Settlement Administrator at Silverstatesettlement@gardencitygroup.com and sends hard copy to:

Silver State Loan Settlement Administrator
P.O. Box 9462
Dublin, Ohio 43107-4562

Be sure to send a copy to Class Counsel at the settlementquestions@gmail.com

4. Settlement Administrator sends e-mails back to student that "we are investigating" or "the investigation is continuing."
5. The Settlement Administrator then sends your evidence to both the Class Counsel and to SLX’s lawyers.
6. If SLX disagrees with the evidence submitted by the student, then the Class Counsel and SLX’s lawyers “meet and confer” about each student’s challenge. This will be done on an on-going basis. If there is no disagreement, the student is re-classified. If there is a disagreement, the Class Action lawyers will represent your interest before Judge William Cahill who will have the final say.

Many of these disputes may be resolved before the February 13, 2010 deadline, especially if you have submitted your evidence already or do so immediately. Some of these disputes will not be resolved until after the February 13, 2010 deadline.

You will not have to make any payments under the Settlement Agreement until you receive a “Reduced Monthly Repayment Notice” from SLX/AES which should reflect your proper classification by showing the proper amount due (it will not show a change in the number of certifications).


Here is the relevant part of the settlement agreement in its entirety:

"10. Dispute Resolution Procedure. If a Class Member disagrees with the number of FAA certifications, the corresponding percentage of unconditional debt forgiveness and conditional debt forgiveness being provided, or the amount of his/her Debt, the following dispute resolution procedure shall be used:

10.1 The Class Member shall send to the Settlement Administrator a written statement
signed under penalty of perjury setting forth the basis of the Class Member’s dispute and submitting his/her evidence or documentation to support that assertion (including any written statements from witnesses supporting the person’s position, log books, flight records, correspondence with Silver State, SLX, or AES, FAA records regarding the number of FAA Certifications obtained, and any other evidentiary material) (“Disputed Claim”). To be timely,the Class Member must send the Disputed Claim so that it is received by the Settlement Administrator on or before the Disputed Claim Deadline. No Disputed Claims received after the Disputed Claim Deadline shall be considered. No evidence or documentation received after the
Disputed Claim Deadline submitted in support of a Disputed Claim received prior to the Disputed Claim Deadline shall be considered.

10.2 The Settlement Administrator shall provide a copy of each Disputed Claim,
including any evidence or documentation submitted in connection therewith, to Class Counsel and to Counsel for SLX within ten (10) days of its receipt.

10.3 SLX’s counsel and Class Counsel shall meet and confer on the Disputed Claims.

If Class Counsel and SLX’s counsel agree as to the resolution of the Disputed Claims, their agreement shall control.

10.4 If SLX’s counsel and Class Counsel cannot reach agreement on the resolution of
the Disputed Claims, such Disputed Claims shall be submitted to retired California Superior Court Judge William J. Cahill (Ret.) of JAMS for resolution on or before ninety (90) days after the Notice Date [December 30, 2009]. SLX may submit evidence to Judge Cahill regarding any such Disputed Claim(s), with a copy to Class Counsel, by that same date. All Disputed Claims shall be decided by Judge Cahill without a hearing, unless such a hearing is requested by Judge Cahill, in which case, the participants may partic ipate by telephone. The parties shall request that Judge Cahill decide all Disputed Claims within thirty (30) days of their submission. The decision of Judge Cahill shall be final, non-appealable and binding on the Class Member and SLX. Judge Cahill’s fees, if any, shall be split equally between SLX and Class Counsel."

In every case that I have seen in which SLX made an error regarding the FAA certifications received by my clients, SLX has charged former students for certifications that they received before they attended SSH or after SSH filed bankruptcy. This certification information appears in section 7 of the Settlement Notices. It is important that every class member check the Notice carefully to see if he or she has been credited with the proper number of certifications and placed in the proper subclass.

Silver State Helicopters / Student Loan Xpress Class Action Settlement Conference Call 2 This Saturday @ 4:00 PM Pacific Time

My last conference call on the SSH/SLX Class Action Settlement was a spirited one, with 135 participants! The vast majority have decided to take my advice and accept the benefits under the proposed class action settlement. Every day since then, I have answered numerous e-mails and spoken to many clients about the proposed settlement agreement. Due to popular demand, I am going to do another conference call this Saturday, January 30 from 4:00 pm to 6:00 pm Pacific Time.

To participate in this conference call, use the Conference Dial-in Number:
(641) 715-3200. When prompted, enter the following access code: 323990 followed by the # key.

Once connected to the conference, you will be able to talk and have access to the touch tone commands listed below.

Participant Feature Keys
*3 Exit - exit the call
*4 Instructions - conference instructions
*6 Mute/Unmute - caller controlled muting

This conference call will be a chance for all of my clients to ask me questions about the proposed settlement agreement and my reasons for recommending it.

Of course, all of my clients are always free to contact me personally by e-mail and by telephone. Many of you have already done so. In addition, I will continue to post FAQs about the settlement, and link to class counsels' FAQs re the settlement.

Thursday, January 07, 2010

Silver State Helicopters / Student Loan Xpress Class Action Settlement Conference Call This Saturday @ 1:00 PM Pacific Time

I have set up a conference call for all of my SSH clients with questions about the proposed class action settlement for former students of SSH who were still enrolled @ SSH on February 4, 2008 and whose student loans are now owned by SLX. This conference call will take place from 1:00 - 3:00 pm Pacific Time this Saturday, January 9, 2010. To participate in this conference call, use the Conference Dial-in Number: (641) 715-3200. When prompted, enter the following access code: 323990 followed by the # key.

Once connected to the conference, you will be able to talk and have access to the touch tone commands listed below.

Participant Feature Keys
*3 Exit - exit the call
*4 Instructions - conference instructions
*6 Mute/Unmute - caller controlled muting

This conference call will be a chance for all of my clients to ask me questions about the proposed settlement agreement and my reasons for recommending it. Senior Assocate Attorney Georgeann Nicol will be joining me in hosting this conference call.

Of course, all of my clients are always free to contact me personally by e-mail and by telephone. Many of you have already done so. In addition, I will continue to post FAQs about the settlement, and link to class counsels' FAQs re the settlement.

Tuesday, January 05, 2010

What Is The Secret Password?

Class Action Counsel has posted a good set of class action frequently asked questions and answers @ http://www.jameshoyer.com/class_settlement.html

These FAQs are updated periodically, and are also set forth @ http://www.pinnaclelawgroup.com/news/silver_state_faqs.php

If you are a class member or potential class member and you want the secret password to access these FAQs, send an e-mail to settlementquestions@gmail.com.

Monday, January 04, 2010

SSH / Student Loan Xpress Class Action Settlement Notices Have Been Mailed Out

10 Page Class Action Settlement Notices have been mailed out to all eligible class members. If you were a student enrolled at Silver State Helicopters on February 4, 2008 and you received a loan from Student Loan Express, you should receive this notice on or before January 11, 2009. If you have not received it, please send an e-mail to the settlement administrator at silverstatesettlement@gardencitygroup.com. Include your full name, current address, loan number, and social security number and say, "Please e-mail me a copy of my class action settlement notice."

There are 4 versions of the settlement notice. The first version is for students that all parties agree are in the class. The second vesion is for their co-signers. As to these students and their co-signers, as the notice says, "You do not need to take any action at this time in order to receive the benefits available under the settlement."

The third version is for students as to which the parties are uncertain as to whether or not the student was still enrolled at Silver State as of February 4, 2008. The fourth version is for their co-signers. These students and their co-signers must file a proof of claim by February 13, 2010 to receive the benefits under the settlement.

Here is how you can tell if you are required to fill in a claim form:

1. Section 1 of your Notice, "Why did I get this Notice," will say, "The Court sent you this Notice because you are a former student of Silver State, and your student loan is owned by SLX, but the parties have not been able to determine whether you were still enrolled at Silver State on February 4, 2008.

2. Section 13 of your Notice, "What do I have to do to participate in the settlement?," will say, "To qualify for settlement benefits, you or your co-signer must send in a claim form. A claim form is enclosed with this Notice. It must be completed and returned under penalty of perjury so that it is received by the Settlement Administrator by February 13, 2009."

3. A claim form will be attached to the Notice.

It is important that you read the Notice carefully!

The heart of the settlement agreement is a schedule which provides debt forgiveness based on the total number of FAA Certifications Received at Silver State.
0 Certifications = 75% debt forgiveness
1 Certification = 60% debt forgiveness

Most of my clients fit in one of these 2 categories.

2 Certifications = 47.5% debt forgiveness
3 Certifications = 30% debt forgiveness
4 Certifications = 20% debt forgiveness

Additional benefits of the settlement agreement as outlined in the Notice include the following:

Interest Forgiveness
"All interest that would have accrued on your loan between February 4, 2008 until shortly after final approval of the settlement will be forgiven."

Lower Interest Rates
"Interest on your restructured loan will accrue at the lower of either (a) your existing interest rate or (b) an new interest rate that is 3% lower that your existing rate, but that cannot be lower that 6%. Your new interest rate will remain a variable interest rate."


Early Repayment Refund
"If you timely pay off your restructured loan within five years of when the first payment is due, you will receive a refund equal to 2.5% of your original loan amount reduced by the debt forgiveness under the settlement."

Effect On Your Credit Report
"SLX has agreet to request that credit reporting agencies (Equifax, Experian, Innovis and TransUnion) remove any previous reports by SLX or its agents about your loan. But, if you fail to make your lower monthly payments after the settlement is approved or exclude yourself from the settlement, then SLX may make additonal reports."