IN THE MATTER OF ENDICOTT INTERNATIONAL BEAUTY SCHOOL,
Docket No. 90-12-SP
Student Financial Assistance Proceeding
Appearances: Carol S. Bengle, Esq., Office of the General Counsel, for the Office of Student Financial Assistance, United States Department of Education.
None at present for Endicott International Beauty School.See footnote 1
Before: Judge John F. Cook
On January 18, 1990, the Office of Student Financial
Assistance (OSFA), initiated a final program review determination
proceeding against Endicott International Beauty School
(Endicott). Endicott then filed a request for a hearing dated
March 29, 1990.
A Notice of Receipt of Request for Hearing and Prehearing
Order was issued April 24, 1990, by the undersigned. This Order
required the parties' counsel to exchange exhibits, witness
lists, file joint stipulations of fact, an initial brief and a
reply brief. These statements were also to be submitted to the
On June 1, 1990, OSFA and Endicott filed a joint motion for
a Stay for 90 days to explore settlement possibilities. On June
5, 1990, a Stay was granted until September 4, 1990, for the
parties to investigate settlement prospects.
OSFA and Endicott filed a joint motion for an additional
Stay on October 18, 1990, to continue to work toward settlement.
A Stay was granted until January 21, 1991.
On April 8, 1991, the parties again requested a Stay of 60
days to facilitate settlement negotiations. A Stay was granted
until June 7, 1991.
On September 18, 1991, counsel for the respondent, Endicott,
requested permission to withdraw from the case. On September 24, 1991, counsel for OSFA filed motions to dissolve the stay and
terminate the proceedings and enter judgement for OSFA based upon
34 C.F.R. § 668.117(c). OSFA's request was based upon the fact
that Respondent's former attorney advised OSFA and the tribunal
in a teleconference that the Respondent institution had closed,
and that the owner or owners had not responded to her requests
for information as to their intentions to proceed in defending
On September 27, 1991, an Order was issued terminating the
stay and restoring Endicott to the active docket. A briefing
schedule was set pursuant to 34 C.F.R. § 668.117(c). This Order
was based upon the following:
1. OSFA's motion requesting that the stay be dissolved and
the case restored to the active docket, since settlement
discussions were unsuccessful and had been terminated.
2. That Respondent's attorney notified OSFA and the
undersigned that the Endicott school had been closed.
Thus, a new briefing schedule was set, ordering Endicott to file its brief, a memorandum of law and exhibit list on or before October 11, 1991. OSFA's brief was due October 25, 1991. Endicott failed to file its initial brief by October 11, 1991.
On October 21, 1991, David H. Cohen, Esq. wrote a letter on
behalf of Mr. Fred Hubert, one of the owners of Endicott
requesting a 30 day stay. Mr. Cohen notified the tribunal that
he was not representing Endicott in these proceedings. On
October 31, 1991, OSFA filed a Motion to Exclude the October 21,
1991, Letter from the Record and to Renew its Motion for
Judgement. On November 4, 1991, the tribunal sent Mr. Cohen a
copy of the cover letter and Messers Hubert and Catucci a copy of
OSFA's motion to renew their motion for judgement.
Endicott's failure to comply with the tribunal's briefing schedule constituted a failure to comply with 34 C.F.R. § 668.117(c). This regulation vests the administrative law judge with the authority to terminate the hearing process and issue a decision against the party if that party does not meet the time limits established by the administrative law judge.
Therefore, Endicott's failure to comply with the order of September 27, 1991, providing that Endicott's brief, memorandum of law, and exhibit list were due by October 11, 1991, comprises a violation of that order. IT IS ORDERED:
1. That the findings of the Final Program Review Determination letter of January 18, 1990, issued by the Office of Student Financial Assistance, Institutional Review Branch, is supportable in whole.
2. That Endicott immediately and in the manner provided by law pay to the United States Department of Education the amount of $24,700.10
3. The amount of $12,500.98 must be returned to the holders of the Guaranteed Student Loans as directed in the Final Program Review Determination letter of January 18, 1990.
4. That these proceedings be terminated.
John F. Cook
Administrative Law Judge
Issued: December 31, 1991, Washington, D.C.
A copy of the attached document was sent be certified mail return
receipt requested to the following:
Elaine M. Pers, Esq.
O'Connell and Aronowitz
100 State Street
Albany, New York 12207-1885
Mr. Fred Hubert
12 Johnson Avenue
Binghamton, New York 13905
Mr. Cosmo Catucci
316 Robble Avenue
Endicott, New York 13760
Carol S. Bengle, Esq.
Office of the General Counsel
U.S. Department of Education
400 Maryland Avenue, S.W.
Room 4104, FOB - 6
Washington, D.C. 20202-2110