A judge just rejected more secrecy in Shilo Sanders' bankruptcy case
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The federal judge in the bankruptcy case of former Colorado football player Shilo Sanders has granted USA TODAY’s motion to intervene in the case and gain greater public transparency after several recent developments were conducted in secret.
Judge Michael E. Romero granted the news outlet’s motion Aug. 12 and ordered the release of redacted versions of recent court documents that previously were kept under seal, including a transcript of a July 14 hearing that was held with no outside observers.
Romero also sustained an objection by USA TODAY to "any proposed closure" of Sanders’ coming bankruptcy trial Aug. 31 with one caveat: He noted the court retains the right to make ad hoc decisions regarding the sealing of any evidence of Sanders’ juvenile records.
Sanders, son of Colorado football coach Deion Sanders, filed for bankruptcy in 2023 in hopes of erasing more than $11 million in debt, almost all of which is owed to a former security guard at his school in Dallas, John Darjean.
The debt stems from a disputed incident between Darjean and Sanders in 2015, when Sanders was 15. Sanders’ attorneys previously filed numerous documents under seal on the basis that a court-issued protective order guards his privacy regarding records from when he was a juvenile.
The judge explained why the July 14 hearing was held in private in his order Aug. 12.
“The Court finds that Sanders has a legitimate privacy interest in keeping these records private,” Romero’s order stated. “To discuss the relevance and continued confidentiality of those records without disclosing them to the public, attendance at the hearing needed to be limited. To hold otherwise would defeat the purpose of the hearing. Nevertheless, to narrowly tailor the sealing of court proceedings on the motions in limine, the Court will docket a redacted version of the July 14 transcript. This transcript will redact references to protected Juvenile Records that will not be relevant to issues at the upcoming trial.”
More than $11 million at stake in Shilo Sanders trial
The coming trial will determine if Sanders can get out of that debt or remain indebted to Darjean in a case that goes back more than 10 years.
Darjean sued Shilo Sanders and his parents in 2016, seeking damages after he claimed Sanders assaulted him and severely injured him at school in 2015 when he tried to confiscate his phone.
Sanders’ parents were dropped from the case by early 2019, leaving Shilo Sanders as the sole defendant at age 19. But when the case finally went to trial in Texas in 2022, Sanders didn’t show up for it. A judge issued a $11.89 million default judgment against him as a result after hearing Darjean present evidence in his favor.
Sanders then filed for Chapter 7 bankruptcy in an effort to get out of that debt – a move that is being contested by Darjean, who is arguing the debt should not be discharged under the law because it stems from a willful and malicious injury. Shilo Sanders disputes that and says he acted in self-defense.
Judge sustains USA TODAY objection with one disclaimer
USA TODAY filed its motion to intervene in the case July 22, noting press coverage of judicial proceedings is "vital" to protect the public’s right to know the workings of the judicial system.
In its motion filed by the firm Zansberg Beylkin LLC, USA TODAY also asked the court to recognize its objection to any proposed closure of the trial. The judge sustained that objection with one qualification.
“Darjean may offer Juvenile Records as exhibits, and/or witnesses may discuss Juvenile Records,” the judge’s order stated. “Assuming that evidence or testimony is deemed relevant, the Court will determine on an ad hoc basis whether preventing public access to those records is necessary. The offered exhibits will not be part of the public record unless and until the Court admits such exhibit. However, the Court notes that, to the extent any Juvenile Records are necessary to determine the parties’ substantive legal rights at trial, there is an even stronger presumption of public access. Sanders’ interests in privacy of his Juvenile Records may well give way to the interests in public access if those records are relevant and necessary.”
Follow reporter Brent Schrotenboer @Schrotenboer. Email: bschrotenb@usatoday.com
This article originally appeared on USA TODAY: A judge just rejected more secrecy in Shilo Sanders' bankruptcy case
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