CBCA 8401

APPELLANT’S MOTION FOR SANCTIONS DENIED: November 3, 2025 CBCA 8401 NATIONAL RECOVERIES, INC., Appellant, v. DEPARTMENT OF EDUCATION, Respondent. Edward T. DeLisle, Andrés M. Vera, and Amaiya L. Johnson of Thompson Hine LLP, Washington, DC; and Jamar T. King of Thompson Hine LLP, Miamisburg, OH, counsel for Appellant. Candice Jackson and Tim Rushenberg, Office of the General Counsel, Department of Education, Washington, DC, counsel for Respondent. Before Board Judges VERGILIO, CHADWICK, and KANG. KANG, Board Judge. This appeal concerns a contract awarded to National Recoveries, Inc. (NRI) by the Department of Education (Education) for student loan debt collection services. NRI filed a motion seeking imposition of sanctions on Education based on its failure to meet deadlines for mandatory filings. We deny the motion. CBCA 8401 2 Background NRI filed this appeal on April 1, 2025. The Board’s order of April 8, 2025, directed NRI to file its complaint and Education to file the appeal file under Board Rule 4 (48 CFR 6101.4(a) (2024)) by May 8, 2025, and for Education to file its answer within thirty days of the filing of the complaint, as required by the Board’s Rules. The order also directed the parties to confer and file a proposed schedule for milestones in the appeal including discovery. NRI filed its complaint, but Education did not file its Rule 4 appeal file. On May 19, 2025, the Board issued an order directing Education to do the following by May 23, 2025: “[E]ither file (1) its Rule 4 file or (2) a request for an extension that includes an explanation for why the filing has not been made and a specific date by which the filing will be made.” On May 22, 2025, the Board held a conference call with the parties to address a separate appeal filed by NRI concerning a different contract with Education (CBCA 8017). During that call, counsel for Education—who had not entered a notice of appearance for either appeal—advised with regard to CBCA 8401 that Education would comply with the Board’s May 19, 2025, order by requesting an extension of time to submit its appeal file. Despite this representation, Education did not file a request for extension by the existing May 23, 2025, due date. Instead, on May 27, 2025, Education filed a request for an extension to submit the appeal file until June 3, 2025. On May 28, 2025, the Board granted Education’s request for an extension to submit the appeal file. Yet, Education did not submit its appeal file by the extended deadline. On June 12, 2025, the Board directed the parties to confirm their availability for a conference call to discuss the schedule for the appeal on June 16, 2025. Although counsel for NRI confirmed availability, counsel for Education did not respond. On July 1, 2025, Education entered notices of appearance of counsel, Candice Jackson and Tim Rushenberg. On July 2, 2025, the Board issued an order directing the parties to confer and by July 11, 2025, file a joint proposed schedule submission of the appeal file, the answer to the complaint, and the remaining milestones set forth in the Board’s order of April 8, 2025. On July 11, 2025, the parties filed a joint proposed schedule for the appeal, which provided for, among other things, Education to file its answer and the appeal file by July 18, 2025. On July 14, 2025, the Board issued an order adopting the proposed schedule. Education did not file the appeal file or answer by the second extended deadline. CBCA 8401 3 On August 29, 2025, NRI filed a motion seeking the following sanctions against Education: (1) deeming the allegations of NRI’s complaint admitted; (2) precluding Education from producing evidence contrary to NRI’s allegations; (3) drawing all evidentiary inferences in favor of NRI against Education; (4) granting NRI “unfettered access” to Education’s electronic and non-electronic data storage systems so that NRI can “prepare the Rule 4 File at [Education’s] expense”; and (5) other sanctions the Board deems appropriate. Memorandum in Support of Motion (Aug. 29, 2025) at 12-13. NRI asserted that “[d]espite several extensions and reset deadlines and stern warnings from the Board, [Education] refuses to file an answer to the complaint or serve a Rule 4 File.” Id. at 1. NRI also represented that, consistent with Rule 8(a), it had attempted to resolve the matter with Education prior to filing the motion. Id.