National Collegiate Student Loan Master Trust et al. v. Pennsylvania Higher Education Assistance Agency et al., C.A. No. 12111-VCS, Opinion (Del. Ch. Aug. 27, 2020)
Landis Rath & Cobb LLP successfully represented trust administrator GSS Data Services, Inc.’s interests during proceedings for cross-motions for judgment on the pleadings in a multi-party, complex trust action that raised novel issues in the Court of Chancery. In the August 27, 2020 decision, Vice Chancellor Joseph R. Slights III decided two issues not previously ruled on by Delaware courts. First, under New York law, a granting clause of a trust agreement may create both a precautionary security interest and an assignment. And second, under Delaware law, owners of a securitized trust owe certain fiduciary obligations to noteholders in the operation of the trust. While the decision narrowed some of the issues and resolved some disputed rights and obligations with respect to some of the parties, this case remains active.