A bankruptcy judge denied a request to rule against Shilo Sanders without a trial.
The case involves an $11.89 million debt Sanders owes to a former security guard, John Darjean.
Darjean alleges Sanders inflicted a ‘willful and malicious’ injury against him in 2015.
The former security guard who is owed more than $11 million from Shilo Sanders made another attempt to win his case against Sanders with a summary judgment ruling that would have prevented Sanders from getting out of that debt in bankruptcy court.
But bankruptcy Judge Michael Romero denied it again Jan. 27, setting the case on course for trial more than two years since the former Colorado football player filed for Chapter 7 bankruptcy in October 2023.
The former security guard, John Darjean, had asked the court to grant him summary judgment on the basis that Sanders inflicted a “willful and malicious’ injury against him at school in 2015, when Shilo was 15 years old.
“The Court finds there are genuine issues of material fact regarding the circumstances surrounding the altercation between the parties, as well as Sanders’ state of mind, including whether he intended to cause injury to Darjean and/or whether Sanders’ actions were justified,” Romero wrote in his ruling obtained by USA TODAY Sports. “Given that this Court is prohibited from engaging in fact-finding or evaluating credibility at the summary judgment stage, these issues are appropriate for trial.”
Judge grants separate request by Shilo Sanders creditor
Judge Romero on Jan. 27 also granted a request by Darjean’s attorneys to abate, or put on hold, one of Darjean’s two lawsuits against Sanders, son of Colorado coach Deion Sanders. Both lawsuits seek to prevent Shilo Sanders from discharging the $11 million debt he owes Darjean from a civil court judgment in 2022.
But one of them appears to be Darjean’s clearest path to do that, so they’ve asked the bankruptcy court to abate the other one, putting that one on hold pending the outcome of the one they want to be front and center.
This means Sanders’ bankruptcy case could kick into a higher gear soon to determine if Sanders will get out of the debt.
“I’m sure this is not the end of this,” Judge Romero said at a recent court meeting to discuss the motion to abate one of the cases.
Why Shilo Sanders filed for bankruptcy
Sanders, 25, filed for bankruptcy after Darjean moved to collect on the $11.89 million default judgment he won against him after suing Sanders and his parents in 2016. Darjean accused Shilo Sanders of severely and permanently injuring him after he tried to confiscate his phone at school in Dallas more than 10 years ago.
The Dallas court eventually dropped Shilo’s parents from the case, leaving Shilo as the sole remaining defendant when he went to college at South Carolina in 2019. Shilo then dropped his attorneys, didn’t respond to trial notices and didn’t show up for the trial in 2022, when Darjean presented evidence before the court. The result was a $11.89 million default judgment against Sanders that will continue to stick to him unless he gets it discharged in bankruptcy court.
Darjean is trying to prevent a discharge and wants to collect every penny owed to him. That’s why he filed two lawsuits in bankruptcy court against Sanders, each designed to prevent the debt from being wiped away.
Why Shilo Sanders’ creditor is making this move
One of Darjean’s two lawsuits is based on part of bankruptcy law, section 523, that says debts are not dischargeable if they stem from a “willful or malicious” injury from the debtor. This is the lawsuit Darjean wants on the front burner. They are have been gathering evidence to show Sanders acted willfully and maliciously when they say he punched and elbowed Darjean that day. Sanders has said it was self-defense.
This is the same case where Darjean sought a summary judgment ruling in his favor − first in 2024 and then again with another motion filed under seal that the judge denied with his ruling Jan. 27. The judge’s denials just mean he thinks the case should be decided at trial and not from a pretrial ruling from the bench.
“Questions involving a defendant’s intent or state of mind are generally not susceptible to summary judgment,” Romero’s latest ruling stated. “Summary judgment on a (523) claim is only appropriate when the facts and circumstances surrounding a debtor’s actions leave no room for a trier of fact to conclude that the debtor willfully and maliciously harmed the plaintiff.”
A victory at trial for Darjean in the “523” case mean Sanders would be on the hook for the $11.89 million judgment and would not have it discharged. It would effectively be “game over” for Sanders, rendering Darjean’s other lawsuit moot.
Darjean was taken to the hospital that day in 2015. A day later, Sanders was taken to juvenile department center after a separate incident, according to court records.
Judge abates other lawsuit against Shilo Sanders
Darjean’s attorneys asked to abate their other lawsuit, which is based on another part of the law, section 727, which says debtors will not be granted a discharge of their debt if they lied or tried to defraud the bankruptcy process by concealing, transferring or removing property.
Sanders’ attorney has denied Shilo has done anything improper. But that lawsuit is still alive after mostly surviving two motions to dismiss it filed by Sanders’ attorney. It now will go on hold pending the outcome of the 523 lawsuit.
What is Shilo Sanders doing now?
Shilo Sanders recently appeared as a fashion model in Paris with his younger quarterback brother Shedeur. He also recently said he was considering acting lessons after being waived by the Tampa Bay Buccaneers last year.
He moved to Miami after after earning a master’s degree at Colorado in organizational leadership. He previously earned a degree at Jackson State, where he also played for his father after transferring from South Carolina.
Follow reporter Brent Schrotenboer @Schrotenboer. Email: bschrotenb@usatoday.com
