Free Answering Brief in Opposition - District Court of Delaware - Delaware

Case 1:04-cv-01551-JJF Document 379-16 Filed 10/05/2007 Page 1 of 3
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Case 1 :04-cv-01551-JJF Document 379-16 Filed 10/05/2007 Page 2 of 3
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STUDENT FINANCE CORPORATION
Nmasx, DE
‘ THIS IS PRIVILEDGED AND CONFIDENTIAL COMMUNICATION BETWEEN
CLIENT AND ATTORNEY
Mr. Tian Ding Ms. Pat Kartha
Mr. Robert C. Feix Mr. Frank Martinez .
Mr. Gary Hawthorne Mr. Perry Tmmibull _
Mr. Chris Huffins Mr. Andrew Yeo
` { Agenda for Meeting with Attorneys
1. Purpose of Meeting l i
A. Review general litigation process _
B. Review specific litigation claims · ;
C. Review deposition process
2. General Litigation Process
A. 3 phases
B. Discovery I
C. Admissibiliry
D. Merits
3. NEI v. SFC
A. History of NELSFC Relationship
a. NEI was e client from 19954996 .
`b. NEi’s contract was full recourse
B. NEI Claims 6- •"‘< P°' iii? `F‘
e. they should have received reserve money
b. they did not receive reserve money because we serviced ioans
poorly
o. they relied upon our misrepresezatation that the default rate
would be a max. of 10%
d. we never intended to pay them reserve money because we did
not have financing
C,. src Defense
9.. NEI did not receive reserve money because NEI ioan defaults
exceeded reserve funds
b. SFC has (i) strong servicing procedures, (ii) experienced Q
collectors, and (iii) independent third party audits confirming ’
the quality of our servicing

Case 1 :04-cv-01551-JJF Document 379-16 Filed 10/05/2007 Page 3 of 3
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c. SFC did not make any defautt rate guarantee and, if NEI
thought SFC was guaranteeing a 10% default rate, why did
NEI agree to a 35% reserve
d. SFC clearly has had adequate financing and continues to have
adequate tii1ancing(e.g., our recent Aaa rating)
C D. SFC Counter Claims
a. NEI owes SFC for the amount that defaults exceed reserves --
the NEI contract was fuil recourse to NEI
_ b. SFC was damaged because it relied upon NEI’s representations
regarding the quaiity of NEI’s programs and NEI’s high
graduation rate
4. Deposition Process _
A. Okay to not remember ~· the best answer often is no answer
B- Dozft answer unless you know it for a fact ·—·» better to have no answez ‘
than to answer irtconectly (eg., a txick question regarding bank .
repurchase obligations) _
_ C. Don’t confuse bank side definitions with school side definitions —— the
NEI litigation is primarily concerned with school side transactions {as
V you know, our different contracts sometimes require us to account for
the same transaction in two different manners)
D. We are the defendants -- anything We say can and wilt be used against
us
E. NEI has a weak ease so they are casting a wide net
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