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Judge authorizes subpoenas in Shilo Sanders bankruptcy case

The creditor who is owed more than $11 million from Deion Sanders’ son, Shilo, won a ruling from a federal bankruptcy judge Thursday that authorizes the creditor to obtain records from third parties related to an incident between him and Shilo Sanders in 2015.

Bankruptcy Judge Michael E. Romero granted the request for the subpoenas, saying that the court finds that there is “good cause” for it. The subpoenas were requested by the creditor, John Darjean, a former security guard at Shilo’s school in Dallas.

Shilo Sanders, now an NFL rookie safety with the Tampa Bay Buccaneers, filed for Chapter 7 bankruptcy in October 2023 with more than $11 million in debt, almost all of it owed to Darjean.

The specific nature of the records that were requested by Darjean is not clear because the request is under seal and the judge’s order was redacted according to a protective order in this bankruptcy case. But the judge’s order pertains to a specific part of Shilo’s bankruptcy case that is all about an incident at Shilo’s school in 2015, when Shilo was 15 years old. The order also says it authorizes a subpoena for the “production of all records, investigations, and police reports” from a third party that is redacted in the court order.

Why is this happening?

Darjean claimed Shilo severely and permanently injured him in 2015 when he swung an elbow into his upper chest and punched him as Darejan tried to confiscate his phone at school. Darjean sued Shilo for damages in 2016 and won a $11.89 million default judgment against Shilo after Shilo didn’t show up for the trial in 2022. After Darjean moved to collect on the judgment against Shilo in 2023, Shilo filed for bankruptcy to effectively erase the judgment against him and get a “fresh start, free from the oppressive burdens of his debt,” as his attorneys said.

In response, Darjean is fighting back so he can collect on all of the debt owed to him by Sanders, who previously played football for his father and coach at Colorado.

In general, debtors like Sanders can discharge their debts in bankruptcy court to give them a fresh start. That’s the goal of filing for bankruptcy, along with stopping debt collection efforts against them by creditors.

But there are exceptions in the law that prevent debts from being discharged in certain cases. One of them is if the debt stems from a “willful and malicious injury by the debtor.”

Darjean’s attorneys are arguing in this case that the $11 million debt should not be discharged because it does stem from a “willful and malicious injury” by Shilo.

That’s what this part of Shilo’s bankruptcy case is all about: Was Shilo acting willfully and maliciously that day in 2015?

Shilo disputes Darjean’s version of events and previously claimed he acted in self-defense. The two sides are proceeding toward a possible trial about it in bankruptcy court. Darjean’s subpoenas aim to discover evidence about it before trial.

What are the stakes for Shilo Sanders?

If Darjean succeeds in proving that Shilo acted willfully and maliciously, Shilo would be on the hook for the $11.89 million judgment. Darjean eventually then could resume debt collections efforts against him as Shilo begins his NFL career.

On the other hand, if Darjean does not prove his case, Shilo’s debt to him could be discharged with relatively minimal damage to Shilo’s bank account.

Dallas police previously provided this information when asked about the incident by USA TODAY Sports:

“On September 17, 2015 at about 11:55 AM, Dallas police responded to a call for service in the 2500 block of W Ledbetter Drive. The preliminary investigation determined a security officer and teen were in an argument when the teen hit the security officer. Dallas Fire Rescue responded and transported the security officer to a local hospital for further medical treatment.”

Court records show that a day after that incident, Shilo Sanders was involved in a separate incident at school with another student and was taken that day to a juvenile detention center in Dallas. Court records also show Darjean underwent spinal surgery a few days after the incident.

According to other records in the case, the school initially suspended Darjean pending an internal investigation but reinstated him with a letter to him that said, “Video evidence supports your statement and the statement of the nearest employee in the area.”

Shilo Sanders, now 25, recently received a master’s degree from Colorado in organizational leadership. He is trying to make the roster of the Buccaneers as an undrafted free agent and could make $840,000 in his first season if he does.

Follow reporter Brent Schrotenboer @Schrotenboer. Email: bschrotenb@usatoday.com

This post appeared first on USA TODAY

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