Daniel Skidmore v. United States Department of Education et al.

CourtDistrict Court, E.D. Michigan
DecidedMarch 5, 2026
Docket2:25-cv-10084
StatusUnknown

This text of Daniel Skidmore v. United States Department of Education et al. (Daniel Skidmore v. United States Department of Education et al.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Daniel Skidmore v. United States Department of Education et al., (E.D. Mich. 2026).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION DANIEL SKIDMORE,

Plaintiff, Case No. 25-10084 Honorable Laurie J. Michelson v.

UNITED STATES DEPARTMENT OF EDUCATION et al.,

Defendants.

OPINION AND ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION TO DISMISS [19] Despite some financial hardships, Daniel Skidmore claims he always prioritized paying his student loans for the past twenty-seven years. (ECF No. 18.) But as he now faces what he calls financial peril, he seeks student loan forgiveness. He spent “approximately 25–30 hours on hold and on calls” with the United States Department of Education and his loan servicer trying to receive clarification on his loan balance and assistance with payments. (Id. at PageID.288.) He sent Freedom of Information (FOIA) and Privacy Act requests, emails, and letters, but has not been able to secure needed information or to reach a resolution. (Id.) All of this, he says, left him with “no alternative but to file this suit” against the Department of Education and Secretary Linda McMahon. (Id.) Proceeding pro se, he claims Defendants breached his student loan agreements and violated the Administrative Procedure Act, the student loan forgiveness statute (20 U.S.C. § 1098e), the Fair Credit Reporting Act (15 U.S.C. § 1681s-2), the Privacy Act (5 U.S.C. § 552a), and the Freedom of Information Act (5 U.S.C. § 552). He seeks equitable, statutory, and monetary relief. (See ECF No. 18.) Defendants filed a motion to dismiss Counts 1 and 3 of the amended complaint

for lack of subject matter jurisdiction under Fed. R. Civ. P. 12(b)(1) and the remaining counts for failure to state a claim under Fed. R. Civ. P. 12(b)(6). (ECF No. 19.) The motion is fully briefed and does not require further argument. See E.D. Mich. LR 7.1(f)(2).

Defendants challenge the Court’s subject matter jurisdiction over the breach

of contract claims in Counts 1 and 3 of the amended complaint. (ECF No. 19, PageID.340.) More specifically, Defendants contend they are immune from such claims in federal district court. So this is where the Court begins. See Am. Telecom Co. v. Republic of Lebanon, 501 F.3d 534, 537 (6th Cir. 2007) (“Subject matter jurisdiction is always a threshold determination.”). “The doctrine of sovereign immunity removes subject matter jurisdiction in lawsuits against the United States unless the government has consented to suit.”

Gingles v. United States Dep’t of Hous. & Urb. Dev., No. 22-11530, 2022 WL 16951643, at *3 (E.D. Mich. Nov. 15, 2022) (citing Beamon v. Brown, 125 F.3d 965, 967 (6th Cir. 1997)). Such immunity also “extends to agencies of the United States.” Muniz-Muniz v. U.S. Border Patrol, 741 F.3d 668, 671 (6th Cir. 2013)). Thus, “[a]bsent a waiver, sovereign immunity shields the Federal Government and its agencies from suit.” Gao v. Jenifer, 185 F.3d 548, 554 (6th Cir. 1999) (citations omitted). “A waiver of the Federal Government’s sovereign immunity must be unequivocally expressed in statutory text.” Gingles, 2022 WL 16951643 at *3 (citing Lane v. Pena, 518 U.S. 187, 192 (1996)).

Two related statutes—The Tucker Act and Little Tucker Act—provide a limited waiver of sovereign immunity for contract claims against the United States but limit this waiver to particular courts. 28 U.S.C. § 1491. Under the Tucker Act, the Court of Federal Claims has exclusive jurisdiction over contract claims seeking more than $10,000, while under the Little Tucker Act, federal district courts have concurrent jurisdiction with the Court of Federal Claims over contract claims seeking

$10,000 or less. 28 U.S.C. § 1346(a)(2). The government invokes the Tucker Act, asserting that Counts 1 and 3 of Skidmore’s amended complaint may only proceed in the United States Court of Federal Claims because they are contract disputes exceeding $10,000. See 28 U.S.C. § 1491; (ECF No. 19, PageID.355.) Skidmore disagrees with the government’s characterization of his claims. (ECF No. 23, PageID.419, 421.) But, as discussed below, the government has the better argument.

In Count 1 of his amended complaint, Skidmore asserts that his student loan agreement with the Department of Education and Secretary McMahon is unenforceable. (ECF No. 18, PageID.297.) He says “payments and interest calculations” and adjustments have been applied to his loans incorrectly and that his “balance and/or interest” has been “consistently inflated” due to improper calculations, record keeping, and other errors. (Id.) All of this, he argues, makes the agreements “unenforceable, void, indefinite, and utterly unconscionable.” (Id. at PageID.298.) He seeks a court order, declaratory judgment, writ, or injunction specifying that the agreements are unenforceable and asks that the government

refund him for previous payments. (Id. at PageID.299.) Likewise, in Count 3, Skidmore claims that to the extent enforceable loan agreements exist, Defendants breached them by failing to abide by the implied duty of good faith and fair dealing. (Id. at PageID.307.) They did this, he alleges, by allowing loan servicers, and specifically the Missouri Higher Education Loan Authority (MOHELA), the servicer on Skidmore’s account, to operate below industry

standards and violate the law. (Id. at PageID.307–308, 310, 312 (“the levels of service are so bad as to constitute a material breach of contract as a matter of law”).) For example, Skidmore alleges that MOHELA has the “longest wait times in the industry,” the “highest level of consumer complaints filed among the major student loan servicing companies,” “failed to send billing statements,” and “incorrectly calculated payments . . . .” (Id. at PageID.310.) Despite Skidmore’s recent effort to recast these claims as something else, they

are clearly contract claims both in nature and in name. (See, e.g., ECF No. 18, PageID.297, 306 (titling Count 1, “Unenforceable Agreement” and Count 3, “Breach of Contract”).) So the Court agrees with the government that these are contract disputes exceeding $10,000, such that these claims may only proceed in the United States Court of Federal Claims per The Tucker Act, 28 U.S.C. § 1491. (ECF No. 19, PageID.355.) Skidmore resists this conclusion by invoking the Higher Education Act, 20 U.S.C. § 1082(a), which contains a waiver of sovereign immunity. (ECF No. 23, PageID.418.) The provision says, in relevant part, the Secretary of Education may

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Daniel Skidmore v. United States Department of Education et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/daniel-skidmore-v-united-states-department-of-education-et-al-mied-2026.