UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF INDIANA

INDIANAPOLIS DIVISION IN RE: ) ) ITT EDUCATIONAL SERVICES, INC., et al.1 ) Case No. 16-07207-JMC-7A ) Debtors. ) Jointly Administered

JOINT MOTION BETWEEN DEBORAH J. CARUSO, CHAPTER 7 TRUSTEE OF ITT

EDUCATIONAL SERVICES, INC., AND PUTATIVE CLASS REPRESENTATIVES ALLEN FEDERMAN, JOANNA CASTRO AND STEVEN RYAN, ET AL. TO (1) PROCEED WITH WARN ACT CLAIMS AND ITS STATE LAW ANALOGUES

IN A SINGLE ADVERSARY PROCEEDING, AND (2) DISMISS OR CONSOLIDATE ALL OTHER PROCEEDINGS AND CONTESTED

MATTERS INVOLVING THE SAME CLAIMS

Deborah J. Caruso, the chapter 7 trustee in this case (“Trustee”) and putative class

representatives Allen Federman, Joanna Castro and Steve Ryan, on behalf of themselves and all

others similarly situated, each by counsel, pursuant to 11 U.S.C. § 105 and Rules 7023, 7042 and

9014(c) of the Federal Rules of Bankruptcy Procedure, each by counsel, jointly request that (1)

all claims brought under the WARN Act, 29 U.S.C. § 2101 et seq., and its state law analogues,

proceed in the action pending in Adversary Proceeding No. 16-50296, and (2) all other

proceedings and contested matters involving the same or similar claims be dismissed or,

alternatively, consolidated into Adversary Proceeding No. 16-50296, on the following grounds:

I. JURISDICTION 1. The Court has jurisdiction over this Joint Motion pursuant to 28 U.S.C. §§ 157

and 1334. This matter is a core proceeding within the meaning of 28 U.S.C. § 157(b)(2).

2. Venue is proper in this district pursuant to 28 U.S.C. §§ 1408 and 1409.

1 The debtors in these cases, along with the last four digits of their respective federal tax identification numbers are ITT Educational Services, Inc. [1311]; ESI Service Corp. [2117]; and Daniel Webster College, Inc. [5980].

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3. The statutory predicates for relief are section 105 of Title 11 of the United States

Code (“Bankruptcy Code”) and Rules 7023, 7042 and 9014(c) of the Federal Rules of

Bankruptcy Procedure (“Bankruptcy Rules”).

II. BACKGROUND

4. On September 16, 2016 (“Petition Date”), ITT Educational Services, Inc. (“ITT”),

ESI Service Corp. (“ESI”) and Daniel Webster College, Inc. (“Webster College,” and together

with ITT and ESI, the “Affiliated Debtors”) filed voluntary petitions for relief under chapter 7 of

the Bankruptcy Code. The Trustee was appointed interim trustee in each of the Affiliated

Debtors’ bankruptcy cases on the Petition Date pursuant to section 701(a)(1) of the Bankruptcy

Code. The Trustee became the case trustee in each of the Affiliated Debtors’ bankruptcy cases

following the conclusion of the first meeting of creditors on November 1, 2016, pursuant to

section 702(d) of the Bankruptcy Code.

5. On October 4, 2016, the Court entered its Order Granting Motion for Joint

Administration of Chapter 7 Cases [Doc 221 & 222], directing the Affiliated Debtors’

bankruptcy cases to be jointly administered for procedural purposes only.

6. On September 16, 2016, Plaintiffs Allen Federman, Joanna Castro, and Steve

Ryan, on their own behalf and on behalf of a putative class of others similarly situated (“Putative

Federman Class”), filed in this Court a Class Action Adversary Proceeding Complaint for

Violation of WARN Act 29 U.S.C. § 2101, et seq. and California Labor Code §§ 1400, et seq. in

the action entitled Federman, et al. v. ITT Educational Services, Inc. (Adv. Proc. No. 16-50296).

Prior to the Petition Date, the Putative Federman Class filed the same class claims against ITT on

September 6, 2016 in the United States District Court for the District of Delaware, Case No. 16-

cv-00780.

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7. On September 20, 2016, Plaintiffs Dennis Artis, Donna A. Lindsay and Patricia

Marshall, on their own behalf and on behalf of a putative class of others similarly situated

(“Putative Artis Class”), filed in this Court a Class Action Adversary Proceeding Complaint for

(1) Violation of the WARN Act 29 U.S.C. § 2101, et seq. and (2) State Wage Payment Laws in the

action entitled Artis, et al. v. ITT Educational Services, Inc. (Adv. Proc. No. 16-50298). Prior to

the Petition Date, the Putative Artis Class filed the same class claims against ITT on September

7, 2016 in the United States District Court for the District of Delaware, case no. 16-cv-00790.

8. On September 20, 2016, in Case No. 16-07207, the Putative Artis Class also filed

a class proof of claim based on ITT’s alleged violations of the WARN Act (“Artis POC”) [Claim

No. 3].

9. On September 23, 2016, in Case No. 16-07207, Christin M. Long, on her own

behalf and on behalf of a putative class of others similarly situated (“Putative Long Class”), filed

a class proof of claim based on ITT’s alleged violations of the WARN Act (“Long POC”) [Claim

No. 15]. Attached to the Long POC is the Class Action Complaint filed prior to the Petition Date

by the Putative Long Class on September 7, 2016 in the United States District Court, Southern

District of Indiana, case no. 1:16-cv-02399, in an action entitled Long et al. v. ITT Educational

Services, Inc.

10. On September 23, 2016, the Putative Long Class also filed its Putative Class

Claimants’ Motion for Order Directing Bankruptcy Rule 7023 Applicable to the “Claim Filing

State” of this Case [Doc 71].

11. On October 10, 2016, counsel for the Putative Federman Class, Putative Artis

Class and Putative Long Class jointly filed a Stipulation of Consent to Motion by Christin Long

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Seeking Application of Fed. R. Bankr. P. 7023 to Proof of Claim and Setting Briefing Schedule

for Motion to Appoint Interim Class Counsel [Doc 288].

12. On October 12, 2016, the Court entered its Order Granting Putative Class

Claimants’ Motion for Order Directing Bankruptcy Rule 7023 Applicable to the “Claim Filing

Stage” of This Case [Doc 340], which made Bankruptcy Rule 7023 applicable through all stages

of the bankruptcy case, including claims resolutions of class claims. The Order further provides

that, “[u]pon the recommendation of the Trustee, the WARN litigation shall go forward as either

a disputed proof of claim or an adversary proceeding. Any competing adversary proceedings or

proofs of claim will thereafter be voluntarily dismissed or consolidated into the adversary

proceeding or proof of claim unless extenuating circumstances can be shown.” [Doc 340, ¶ 4].

13. On January 20, 2017, the Court entered an Order appointing Outten & Golden

LLP as interim class counsel to represent the putative WARN Act claimants in this bankruptcy

case. [Doc 981].

14. On April 18, 2018, the Court entered an Order Granting Agreed Motion for Entry

of a Protective Order Governing the Production of Confidential Information Exchanged Between

Deborah J. Caruso, Chapter 7 Trustee of ITT Educational Services, Inc., and Putative Class

Representatives Allen Federman, Joanna Castro and Steven Ryan, et al. (the “Protective Order”)

[Doc 2504].

15. Since entry of the Protective Order, counsel for the Trustee and interim class

counsel for the putative WARN Act claimants have informally exchanged information, reviewed

and analyzed payroll data, engaged in regular periodic conference calls in an effort to narrow

areas of disagreement and streamline the litigation process and jointly drafted the proposed

Pretrial Scheduling Order attached as Exhibit 1.

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16. As set forth in the proposed Pretrial Scheduling Order, subject to Court approval,

counsel for the Trustee and interim class counsel for the putative WARN Act claimants agree

that the claims brought under the WARN Act and its state law analogues should be litigated in

the action pending in Adversary Proceeding No. 16-50296, which was initiated by interim class

counsel for the WARN Act claimants. In addition, subject to Court approval, counsel for the

Trustee and interim class counsel for the putative WARN Act claimants agree that the action

initiated by the Putative Artis Class pending in Adversary Proceeding No. 16-50298 should be

dismissed, and the Artis POC and the Long POC should be withdrawn or, alternatively,

Adversary Proceeding No. 16-50298, the Artis POC and the Long POC should be consolidated

into the action pending in Adversary Proceeding No. 16-50296. A proposed Order Granting

Joint Motion Between Deborah J. Caruso, Chapter 7 Trustee of ITT Educational Services, Inc.,

and Putative Class Representatives Allen Federman, Joanna Castro and Steven Ryan, et al. to

(1) Proceed with WARN Act Claims and its State Law Analogues in a Single Adversary

Proceeding and (2) Dismiss or Consolidate All Other Proceedings and Contested Matters

Involving the Same Claims is attached as Exhibit 2.

III. RELIEF REQUESTED

17. The parties request the Court grant this motion pursuant to section 105 of the

Bankruptcy Code and Bankruptcy Rules 7023, 7042 and 9014(c).

IV. GROUNDS FOR GRANTING RELIEF 18. “All disputes in bankruptcy are either adversary proceedings or contested

matters.” In re American Reserve, 840 F.2d 487, 488 (7th Cir.1988). Section 105 of the

Bankruptcy Code provides that “[t]he court may issue any order, process, or judgment that is

necessary or appropriate to carry out the provisions of this title.”

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19. The Court has ordered Bankruptcy Rule 7023 applies through all stages of the

bankruptcy case, including claims resolution of class claims. In addition, S.D. Ind. B-9014-1

provides that, unless otherwise ordered by the Court, adversary proceeding rules governing

certain aspects of discovery and summary judgment procedure apply in contested matters. The

Court has discretion under Bankruptcy Rule 9014(c) to apply any and all of the Bankruptcy

Rules governing adversary proceedings in contested manners. Accordingly, because Bankruptcy

Rules set forth in Section 7000 et seq. would likely apply to the WARN Act claims and its state

law analogues in a contested manner in this case, proceeding with the litigation of those claims

in an adversary proceeding is appropriate under the circumstances.

20. Proceeding in an adversary proceeding is also appropriate under the present

circumstances because claims based on the same legal theories and substantially the same factual

allegations are currently pending in two separate adversary proceedings, as well as set forth in

the Artis POC and Long POC filed in Case No. 16-07207. The adversary proceeding filed by the

Putative Artis Class should be dismissed and the Artis POC filed by the Putative Artis Class and

the Long POC filed by the Putative Long Class should both be withdrawn or, alternatively, the

adversary proceeding filed by the Putative Artis Class, the Artis POC and the Long POC should

be consolidated into the adversary proceeding filed by the Putative Federman Class. This will

allow the Trustee to defend the claims in a single adversary proceeding, thereby reducing the

expense to the bankruptcy estate.

21. Bankruptcy Rule 7042 permits the Court to consolidate actions or issue any other

orders to avoid unnecessary cost or delay if actions before the Court involve a common question

of law or fact. Indeed, a “district court has broad discretion to dismiss a complaint ‘for reasons of

wise judicial administration . . . whenever it is duplicative of a parallel action already pending in

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another federal court.’” McReynolds v. Merrill Lynch & Co., 694 F.3d 873, 888–89 (7th Cir.

2012) (citing Serlin v. Arthur Andersen & Co., 3 F.3d 221, 223 (7th Cir. 1993) (quoting Ridge

Gold Standard Liquors, Inc. v. Joseph E. Seagram & Sons, Inc., 572 F.Supp. 1210, 1213 (N.D.

Ill. 1983)).

22. According to the Seventh Circuit Court of Appeals, “[a] suit is duplicative if the

‘claims, parties, and available relief do not significantly differ between the two

actions.’” McReynolds, 694 F.3d at 889 (quoting Ridge Gold Standard, 572 F. Supp. At 1213).

“The district court has significant latitude on this question, and we will reverse only for abuse of

discretion.” Id. (citing Serlin, 3 F.3d at 223).

23. Bankruptcy courts have routinely dismissed duplicative WARN Act claims and

actions filed in their courts. In re MF Glob. Holdings, Ltd., 464 B.R. 619, 623 (Bankr. S.D.N.Y.

2012) (dismissing duplicative WARN complaint in the interest of the parties and judicial

economy).

24. In In re TransCare Corp., the bankruptcy court was faced with duplicate WARN

Act actions, found no benefit to consolidating them and dismissed the action not filed by interim

class counsel. 552 B.R. 69, 78 (Bankr. S.D.N.Y. 2016). The court reasoned that “[c]onsolidation

would require interim counsel to craft a consolidated class action complaint and require the

defendants to file an amended answer, all of which would serve to increase the cost and delay the

resolution of this action.” Id. Similarly, in In re Digital Domain Media Group, the court

dismissed a duplicative WARN Act action noting that “[a] duplicative action is one that involves

the same parties, rights, and relief prayed for, founded upon the same facts and essential basis for

relief.” 2012 Bankr. LEXIS 5756, at *6-7; 2012 WL 6135353, at *2. (Bankr. D. Del. Dec. 7,

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2012). The court allowed the complaint filed by the firm appointed as interim class counsel to

proceed and dismissed the other complaint as duplicative. Id.

25. The adversary proceeding initiated by the Putative Artis Class should be

dismissed, and the Artis POC and the Long POC should be withdrawn because the claims

asserted therein are based on the same alleged WARN Act violations and substantially the same

factual allegations presented in the adversary proceeding filed by the Putative Federman Class.

Accordingly, the interests of the claimants in the Putative Artis Class and Putative Long Class

are adequately represented in the adversary proceeding filed by the Putative Federman Class.

Interim class counsel was previously appointed to represent the WARN Act claimants who

initiated that adversary proceeding and who have been engaged in informal discovery with the

Trustee since April 2018.

26. Proceeding with all WARN Act claims and its state law analogues in a single

adversary proceeding will promote the interests of convenience and economy and eliminate the

unnecessary expense to the estate of defending against these claims in multiple proceedings.

27. If the adversary proceeding initiated by the Putative Artis Class and the Artis

POC and Long POC are consolidated into the adversary proceeding filed by the Putative

Federman Class, and not dismissed or withdrawn, the Trustee requests that she be authorized to

file only a single answer to the adversary complaint filed by the Putative Federman Class. This

will avoid duplicating the effort of responding to substantially the same factual and legal

allegations three separate times.

V. NOTICE

28. Pursuant to the Order Establishing Certain Notice, Case Management and

Administrative Procedures and Approve Proposed Form 309D (the “Case Management

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Procedures”) entered by the Court on October 4, 2016 [Doc 220], the Trustee will serve a copy

of this motion, along with the Exhibits, on the following (as defined in the Case Management

Procedures): (a) the Core Group; (b) the Request for Notice List; (c) the Appearance List; and

(d) counsel for the Putative WARN Act Class.

NOTICE IS GIVEN, that pursuant to the Case Management Procedures, any objection to this motion must be in writing and filed with the Bankruptcy Clerk by no later than 4:00 p.m. (prevailing Eastern Time) on April 24, 2019. Those not required or not permitted to file electronically must deliver any objection by U.S. mail, courier, overnight/express mail or in person at:

116 U.S. Courthouse 46 East Ohio Street Indianapolis, IN 46204

The objecting party must also serve a copy of the written objection upon the Trustee’s counsel, at Counsel for Trustee Deborah J. Caruso, Rubin & Levin, P.C., 135 N. Pennsylvania Street, Suite 1400, Indianapolis, IN 46204. If an objection is NOT timely filed, the requested relief may be granted without a hearing.

NOTICE IS FURTHER GIVEN that in the event an objection to this motion is timely filed, a hearing on this motion and such objection will be conducted on May 1, 2019 at 1:30 p.m. (prevailing Eastern time), in Room 325 of the United States Courthouse, 46 East Ohio Street, Indianapolis, IN 46204.

WHEREFORE, the parties respectfully request the Court enter an order substantially in

the form attached as Exhibit 2 providing that (1) all claims brought under the WARN Act, 29

U.S.C. § 2101 et seq. and its state law analogues proceed in the action pending in Adversary

Proceeding No. 16-50296, (2) the proposed Pretrial Scheduling Order attached as Exhibit 1 be

entered in Adversary Proceeding No. 16-50296, (3) all other proceedings and contested matters

involving the same or similar claims be deemed dismissed and withdrawn, including the

adversary proceeding initiated by the Putative Artis Class, the Artis POC and the Long POC or,

alternatively, be deemed consolidated into the action pending in Adversary Proceeding No. 16-

50296, (4) the Trustee is authorized to file only a single answer to the adversary complaint filed

by the Putative Federman Class, and (5) the parties be granted all other just and proper relief.

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Dated: April 9, 2019 Respectfully submitted,

/s/ Jack A. Raisner Jack A. Raisner René S. Roupinian OUTTEN & GOLDEN LLP 685 Third Avenue, 25th Floor New York, New York 10017 Telephone: (212) 245-1000 Facsimile: (646) 509-2060 jar@outtengolden.com rsr@outtengolden.com -and- Anthony R. Jost RILEY BENNETT EGLOFF LLP 141 East Washington St., 4th Floor Indianapolis, IN 46204 Telephone: (317) 636-8000 Facsimile: (317) 636-8027 Email: TJost@RBELAW.com Interim Class Counsel

/s/ James E. Rossow Jr. James E. Rossow Jr. (Atty. No. 21063-29) Joshua W. Casselman (Atty. No. 27055-49) RUBIN & LEVIN, P.C. 135 N. Pennsylvania Street, Suite 1400 Indianapolis, Indiana 46204 Tel: (317) 634-0300 Fax: (317) 263-9411 jim@rubin-levin.net jcasselman@rubin-levin.net Counsel to the Trustee

CERTIFICATE OF SERVICE

I hereby certify that on April 9, 2019, a copy of the foregoing Joint Motion Between Deborah J. Caruso, Chapter 7 Trustee of ITT Educational Services, Inc., and Putative Class Representatives Allen Federman, Joanna Castro and Steven Ryan, et al. to (1) Proceed with WARN Act Claims and its State Law Analogues in a Single Adversary Proceeding, and (2) Dismiss or Consolidate all Other Proceedings and Contested Matters Involving the Same Claims was filed electronically. Pursuant to Section IV.C.3(a) of the Case Management Procedures, notice of this filing will be sent to the following parties through the Court’s Electronic Case Filing System. Parties may access this filing through the Court’s system. John Joseph Allman jallman@hbkfirm.com, dadams@hbkfirm.com Richard Allyn rallyn@robinskaplan.com Robert N Amkraut ramkraut@foxrothschild.com Scott S. Anders scott.anders@jordanramis.com, litparalegal@jordanramis.com Manuel German Arreaza manuel.arreaza@cfpb.gov Todd Allan Atkinson tatkinson@ulmer.com Darren Azman dazman@mwe.com Kay Dee Baird kbaird@kdlegal.com, rhobdy@kdlegal.com;crbpgpleadings@kdlegal.com Michael I. Baird baird.michael@pbgc.gov, efile@pbgc.gov Christopher E. Baker cbaker@hbkfirm.com, thignight@hbkfirm.com

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James David Ballinger jim@kentuckytrial.com, jennifer@kentuckytrial.com Joseph E. Bant jebant@lewisricekc.com William J. Barrett william.barrett@bfkn.com, mark.mackowiak@bfkn.com Ashley Flynn Bartram ashley.bartram@oag.texas.gov Alex M Beeman alex@beemanlawoffice.com, abeeman@reminger.com Thomas M Beeman tom@beemanlawoffice.com Richard James Bernard rbernard@foley.com Thomas Berndt tberndt@robinskaplan.com, jgerboth@robinskaplan.com John J Berry john.berry@dinsmore.com, Christina.Lee@DINSMORE.COM Lauren Beslow lauren.beslow@quarles.com Brandon Craig Bickle bbickle@gablelaw.com Michael Blumenthal michael.blumenthal@tklaw.com David J. Bodle dbodle@hhclaw.com, layres@hhlaw-in.com Robert A. Breidenbach rab@goldsteinpressman.com Wendy D Brewer wbrewer@fmdlegal.com, cbellner@fmdlegal.com Kayla D. Britton kayla.britton@faegrebd.com, noticeFRindy@faegrebd.com Robert Bernard Bruner bob.bruner@nortonrosefulbright.com Jason R Burke jburke@bbrlawpc.com, kellis@bbrlawpc.com Erin Busch ebusch@nebraska.edu John Cannizzaro john.cannizzaro@icemiller.com, Thyrza.Skofield@icemiller.com Kevin M. Capuzzi kcapuzzi@beneschlaw.com, lmolinaro@beneschlaw.com;docket@beneschlaw.com James E. Carlberg jcarlberg@boselaw.com, mwakefield@boselaw.com;rmurphy@boselaw.com Steven Dean Carpenter scarpenter1@dor.in.gov Deborah Caruso dcaruso@rubin-levin.net, dwright@rubin-levin.net;jkrichbaum@rubin-levin.net;atty_dcaruso@bluestylus.com Deborah J. Caruso trusteecaruso@rubin-levin.net, DJC@trustesolutions.net Joshua W. Casselman jcasselman@rubin-levin.net, angie@rubin-levin.net;atty_jcasselman@bluestylus.com Ben T. Caughey ben.caughey@merchocaughey.com Sonia A. Chae chaes@sec.gov John Andrew Chanin jchanin@lindquist.com, srummery@lindquist.com Courtney Elaine Chilcote courtney@ckhattorneys.com, ckh@ckhattorneys.com;tracy@ckhattorneys.com Dale C Christensen christensen@sewkis.com Eboney Delane Cobb ecobb@pbfcm.com Tiffany Cobb tscobb@vorys.com Michael Edward Collins mcollins@manierherod.com Michael Anthony Collyard mcollyard@robinskaplan.com, rhoule@robinskaplan.com Eileen Connor econnor@law.harvard.edu Lawrence D. Coppel lcoppel@gfrlaw.com Heather M. Crockett Heather.Crockett@atg.in.gov, darlene.greenley@atg.in.gov J Russell Cunningham rcunningham@dnlc.net, reaster@dnlc.net Erica Dausch edausch@babstcalland.com Melissa J. DeGroff mjd@kgrlaw.com, cjs@kgrlaw.com

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Dustin R. DeNeal dustin.deneal@faegrebd.com, noticeFRindy@faegrebd.com Laura A DuVall Laura.Duvall@usdoj.gov, Catherine.henderson@usdoj.gov Stephen Emedi semedi@law.harvard.edu Annette England annette.england@btlaw.com Charles Anthony Ercole cercole@klehr.com, acollazo@klehr.com Carolyn Meredith Fast carolyn.fast@ag.ny.gov Elaine Victoria Fenna elaine.fenna@morganlewis.com Andrew W Ferich awf@chimicles.com Scott Patrick Fisher sfisher@drewrysimmons.com, lgarrison@DSVlaw.com John David Folds dfolds@bakerdonelson.com, sparson@bakerdonelson.com Jennifer N Fountain jfountain@iislaw.com, sfilippini@iislaw.com Sarah Lynn Fowler sarah.fowler@mbcblaw.com, deidre.gastenveld@mbcblaw.com Robert W. Fuller rfuller@rbh.com Carlos Galliani carlos@thelidjifirm.com Jonathan William Garlough jgarlough@foley.com, mstockl@foley.com;mdlee@foley.com Lisa Giandomenico lgiandomenico@nmag.gov Lea Pauley Goff lea.goff@skofirm.com, emily.keith@skofirm.com Barry S. Gold bgold@mmlawus.com John C Goodchild john.goodchild@morganlewis.com Douglas Gooding dgooding@choate.com John Andrew Goodridge jagoodridge@jaglo.com, angray@jaglo.com;dwhiggs@jaglo.com Michael Wayne Grant michael.w.grant@doj.state.or.us Richard Grayson Grant rgrant@rgglaw.com, grantecf@gmail.com Alan Mark Grochal agrochal@tydingslaw.com Elizabeth N. Hahn ehahn@rubin-levin.net, mralph@rubin-levin.net Gregory Forrest Hahn ghahn@boselaw.com, jmcneeley@boselaw.com Julian Ari Hammond Jhammond@hammondlawpc.com, ppecherskaya@hammondlawpc.com Wallace M Handler whandler@swappc.com, kkloock@swappc.com William J. Hanlon whanlon@seyfarth.com Adam Craig Harris adam.harris@srz.com Brian Hauck bhauck@jenner.com Jeffrey M. Hawkinson jhawkinson@pcslegal.com, danderson@pcslegal.com Michael J. Hebenstreit mjh@whzlaw.com, arlene@whzlaw.com;ene@whzlaw.com;kdt@whzlaw.com Amanda Marie Hendren amanda@indianalawgroup.com Claude Michael Higgins Michael.Higgins@ag.ny.gov Michael W. Hile mhile@jacobsonhile.com, assistant@jacobsonhile.com Sean M Hirschten shirschten@psrb.com Robert M. Hirsh robert.hirsh@arentfox.com John C. Hoard johnh@rubin-levin.net, jkrichbaum@rubin-levin.net;atty_jch@trustesolutions.com;sturpin@rubin-levin.net Curt Derek Hochbein chochbein@rubin-levin.net, mralph@rubin-levin.net;lking@rubin-levin.net;atty_chochbein@bluestylus.com Jeffrey A Hokanson jeff.hokanson@icemiller.com, bgnotices@icemiller.com Steven Howard Holinstat sholinstat@proskauer.com Diana Hooley diana.hooley@state.ma.us

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Thomas Ross Hooper hooper@sewkis.com George Wade Hopper ghopper@cohenandmalad.com, klandeck@cohenandmalad.com Andrew E. Houha bkecfnotices@johnsonblumberg.com Andrew W. Hull awhull@hooverhullturner.com, fgipson@hooverhullturner.com James C Jacobsen jjacobsen@nmag.gov, eheltman@nmag.gov Christine K. Jacobson cjacobson@jacobsonhile.com, 5412@notices.nextchapterbk.com Jay Jaffe jay.jaffe@faegrebd.com, noticeFRindy@faegrebd.com David Januszewski djanuszewski@cahill.com Benjamin F Johns bfj@chimicles.com, klw@chimicles.com Russell Ray Johnson russj4478@aol.com Kenneth C. Jones kcjones@lewisricekc.com Anthony R. Jost tjost@rbelaw.com, baldous@rbelaw.com David J. Jurkiewicz DJurkiewicz@boselaw.com, mwakefield@boselaw.com;rmurphy@boselaw.com;dlingenfelter@boselaw.com Timothy Q. Karcher tkarcher@proskauer.com Alan Katz akatz@lockelord.com Richard B. Kaufman richardkfmn@gmail.com Carly Kessler ckessler@robinskaplan.com John M. Ketcham jketcham@psrb.com, scox@psrb.com Taejin Kim tae.kim@srz.com Edward M King tking@fbtlaw.com, lsugg@fbtlaw.com;tking@ecf.inforuptcy.com Roy F. Kiplinger bankruptcy@kiplingerlaw.com, bankruptcy@kiplingerlaw.com Jackson Taylor Kirklin taylor.kirklin@usdoj.gov, denise.woody@usdoj.gov;melanie.crouch@usdoj.gov James A. Knauer jak@kgrlaw.com, tjf@kgrlaw.com Kevin Dale Koons kkoons@kgrlaw.com Harris J. Koroglu hkoroglu@shutts.com, fsantelices@shutts.com Lawrence Joel Kotler ljkotler@duanemorris.com Robert R Kracht rrk@mccarthylebit.com Andrew L. Kraemer akraemer@johnsonblumberg.com, akraemerlawoffice@att.net David R. Krebs dkrebs@hbkfirm.com, dadams@hbkfirm.com Jerrold Scott Kulback jkulback@archerlaw.com Jay R LaBarge jlabarge@stroblpc.com Darryl S Laddin bkrfilings@agg.com Michael J. Langlois mlanglois@shouselanglois.com, rshouse@shouselanglois.com Vilda Samuel Laurin slaurin@boselaw.com Jordan A Lavinsky jlavinsky@hansonbridgett.com Todd Evan Leatherman todd.leatherman@ky.gov David S Lefere dlefere@mikameyers.com, jfortney@mikameyers.com Anthony Darrell Lehman alehman@hpwlegal.com Martha R. Lehman mlehman@salawus.com, marthalehman87@gmail.com;pdidandeh@salawus.com;lengle@salawus.com Gary H Leibowitz gleibowitz@coleschotz.com, blansinger@coleschotz.com;pratkowiak@coleschotz.com Donald D Levenhagen dlevenhagen@landmanbeatty.com Elizabeth Marie Little elizabeth.little@faegrebd.com

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Edward J LoBello elobello@msek.com Melinda Hoover MacAnally Melinda.MacAnally@atg.in.gov, Carrie.Spann@atg.in.gov;Kenyatta.Peerman@atg.in.gov Christopher John Madaio Cmadaio@oag.state.md.us John A. Majors jam@morganandpottinger.com, majormajors44@yahoo.com Steven A. Malcoun dsmith@mayallaw.com Jonathan Marshall jmarshall@choate.com Thomas Marvin Martin tmmartin@lewisricekc.com Jeff J. Marwil jmarwil@proskauer.com, npetrov@proskauer.com;pyoung@proskauer.com;sholinstat@proskauer.com Richard J Mason rmason@mcguirewoods.com C. Ed Massey mbracken@nkylawyers.com, cedmassey@nkylawyers.com Ann Wilkinson Matthews amatthews@ncdoj.gov Rachel Jaffe Mauceri rachel.mauceri@morganlewis.com Michael Wesley McBride mmcbride@cohenandmalad.com, klandeck@cohenandmalad.com Michael K. McCrory mmccrory@btlaw.com, bankruptcyindy@btlaw.com Maureen Elin McOwen molly.mcowen@cfpb.gov Harley K Means hkm@kgrlaw.com, kwhigham@kgrlaw.com;cjs@kgrlaw.com Toby Merrill tomerrill@law.harvard.edu, ppsl@law.harvard.edu Robert W. Miller rmiller@manierherod.com Sherry Millman smillman@stroock.com Jason Milstone jason.milstone@cmsenergy.com Thomas E Mixdorf thomas.mixdorf@icemiller.com, susan.cogdill@icemiller.com Evgeny Grigori Mogilevsky eugene@egmlegal.com, emily@egmlegal.com;mogilevskyer41855@notify.bestcase.com James P Moloy jmoloy@boselaw.com, dlingenfelter@boselaw.com;mwakefield@boselaw.com Ronald J. Moore Ronald.Moore@usdoj.gov Hal F Morris hal.morris@oag.texas.gov Michael David Morris michael.morris@ago.mo.gov Kevin Alonzo Morrissey kmorrissey@lewis-kappes.com, soliver@lewis-kappes.com;leckert@lewis-kappes.com;kwilliams@lewis-kappes.com Whitney L Mosby wmosby@bgdlegal.com, fwolfe@bgdlegal.com C Daniel Motsinger cmotsinger@kdlegal.com, cmotsinger@kdlegal.com;crbpgpleadings@kdlegal.com;shammersley@kdlegal.com Lee Duck Moylan lmoylan@klehr.com, acollazo@klehr.com Joseph L. Mulvey joseph@mulveylawllc.com, linda@mulveylawllc.com Abraham Murphy murphy@abrahammurphy.com Justin Scott Murray jmurray@atg.state.il.us Alissa M. Nann anann@foley.com, DHeffer@foley.com Henry Seiji Newman hsnewman@dglaw.com Kevin M. Newman knewman@menterlaw.com, kmnbk@menterlaw.com Cassandra A. Nielsen cnielsen@rubin-levin.net, atty_cnielsen@bluestylus.com,mralph@rubin-levin.net;lking@rubin-levin.net Ryan Charles Nixon rcnixon@lamarcalawgroup.com Isaac Nutovic inutovic@nutovic.com

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Michael O'Donnell mike.odonnell@nortonrosefulbright.com Gregory Ostendorf gostendorf@scopelitis.com, agregory@scopelitis.com Weston Erick Overturf wes.overturf@mbcblaw.com, deidre.gastenveld@mbcblaw.com;ellen.sauter@mbcblaw.com Pamela A. Paige ppaige@plunkettcooney.com, amiller@plunkettcooney.com Kenneth Pasquale kpasquale@stroock.com Eric Pendergraft ependergraft@slp.law, dwoodall@slp.law;bss@slp.law Danielle Ann Pham danielle.pham@usdoj.gov Anthony Pirraglia anthony.pirraglia@tklaw.com Jack A Raisner jar@outtengolden.com, kdeleon@outtengolden.com;jquinonez@outtengolden.com Jonathan Hjalmer Reischl jonathan.reischl@cfpb.gov Michael Rella mrella@mmlawus.com Caroline Ellona Richardson caroline@paganelligroup.com, anna@paganelligroup.com James Leigh Richmond James.Richmond@fldoe.org Mai Lan Gabrielle Rodgers Rodgers.MaiLan@pbgc.gov, efile@pbgc.gov John M. Rogers johnr@rubin-levin.net, jkrichbaum@rubin-levin.net;atty_rogers@bluestylus.com;mralph@rubin-levin.net Melissa M. Root mroot@jenner.com, wwilliams@jenner.com David A. Rosenthal darlaw@nlci.com James E Rossow jim@rubin-levin.net, ATTY_JER@trustesolutions.com;robin@rubin-levin.net;lisa@rubin-levin.net Rene Sara Roupinian rsr@outtengolden.com, jxh@outtengolden.com;kdeleon@outtengolden.com;rfisher@outtengolden.com;gl@outtengolden.com;jquinonez@outtengolden.com Victoria Fay Roytenberg vroytenberg@law.harvard.edu, jjimenez@law.harvard.edu Steven Eric Runyan ser@kgrlaw.com Craig Damon Rust craig.rust@doj.ca.gov, Lindsay.Bensen@doj.ca.gov Karl T Ryan stacey@ryanesq.com, kryan@ryanesq.com Joseph Michael Sanders jsanders@atg.state.il.us Thomas C Scherer tscherer@bgdlegal.com, fwolfe@bgdlegal.com James R. Schrier jrs@rtslawfirm.com, lrobison@rtslawfirm.com;jlandes@rtslawfirm.com Ronald James Schutz rschutz@robinskaplan.com H. Jeffrey Schwartz jschwartz@robinskaplan.com Courtney Michelle Scott cscott1@dor.in.gov Joseph E Shickich jshickich@foxrothschild.com, vmagda@foxrothschild.com Randall R Shouse rshouse@shouselanglois.com, mlanglois@shouselanglois.com William E Smith wsmith@k-glaw.com, clipke@k-glaw.com Lauren C. Sorrell lsorrell@kdlegal.com, ayeskie@kdlegal.com;swaddell@kdlegal.com;cmotsinger@kdlegal.com;shammersley@kdlegal.com Berry Dan Spears berrydspears616@gmail.com Catherine L. Steege csteege@jenner.com, mhinds@jenner.com;thooker@jenner.com LaChelle D Stepp lstepp@steppjaffe.com, lastepp@yahoo.com Jason V Stitt jstitt@kmklaw.com Sharon Stolte sstolte@sandbergphoenix.com

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Jesse Ellsworth Summers esummers@burr.com, sguest@burr.com Matthew G. Summers summersm@ballardspahr.com, lanoc@ballardspahr.com Jonathan David Sundheimer jsundheimer@btlaw.com Nathan L Swehla nswehla@graydon.law Nancy K. Swift nswift@buchalter.com, cbohnsack@buchalter.com Andrew W.J. Tarr atarr@robinsonbradshaw.com, jrobey@robinsonbradshaw.com Eric Jay Taube eric.taube@wallerlaw.com, annmarie.jezisek@wallerlaw.com;sherri.savala@wallerlaw.com Meredith R. Theisen mtheisen@rubin-levin.net, dwright@rubin-levin.net;mcruser@rubin-levin.net Meredith R. Theisen mtheisen@rubin-levin.net, atty_mtheisen@bluestylus.com;mralph@rubin-levin.net Jessica L Titler jt@chimicles.com David Tocco djtocco@vorys.com, mdwalkuski@vorys.com Todd Christian Toral todd.toral@dlapiper.com, todd-toral-9280@ecf.pacerpro.com Ronald M. Tucker rtucker@simon.com, cmartin@simon.com,bankruptcy@simon.com Christopher Turner christopher.turner@lw.com, DClitserv@lw.com U.S. Trustee ustpregion10.in.ecf@usdoj.gov Michael Ungar MUngar@mwe.com Lauren Valkenaar lauren.valkenaar@nortonrosefulbright.com Sally E Veghte sveghte@klehr.com, acollazo@klehr.com Rachel Claire Verbeke rverbeke@stroblpc.com Aimee Vidaurri aimee.vidaurri@nortonrosefulbright.com Amy L VonDielingen avondielingen@woodmclaw.com Amy E Vulpio vulpioa@whiteandwilliams.com Carolyn Graff Wade Carolyn.G.Wade@doj.state.or.us Christopher D Wagner cwagner@hooverhullturner.com Louis Hanner Watson louis@watsonnorris.com Jeffrey R. Waxman jwaxman@morrisjames.com, jdawson@morrisjames.com;wweller@morrisjames.com Christine M.H. Wellons christine.wellons@maryland.gov Philip A. Whistler philip.whistler@icemiller.com, melodye.mills@icemiller.com Bradley Winston bwinston@winstonlaw.com, lwheaton@winstonlaw.com Brandon Michael Wise bwise@prwlegal.com Cathleen Dianne Wyatt cwyatt@fbtlaw.com, tacton@fbtlaw.com James T Young james@rubin-levin.net, lking@rubin-levin.net;atty_young@bluestylus.com;mralph@rubin-levin.net James E. Zoccola jzoccola@lewis-kappes.com I further certify that on April 9, 2019, pursuant to Section IV.C.3(c) of the Case Management Procedures, a copy of the foregoing Joint Motion Between Deborah J. Caruso, Chapter 7 Trustee of ITT Educational Services, Inc., and Putative Class Representatives Allen Federman, Joanna Castro and Steven Ryan, et al to (1) Proceed with WARN Act Claims and its State Law Analogues in a Single Adversary Proceeding and (2) Dismiss or Consolidate all Other Proceedings and Contested Matters Involving the Same Claims was emailed to the following:

Arlington ISD/Richardson ISD: Eboney Cobb at ecobb@pbfcm.com

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CEC Red Run, LLC: Alan M. Grochal at agrochal@tydingslaw.com SWRE Deal V Building, LLC: Paul Weiser at pweiser@buchalter.com Tarrant County/Dallas County: Elizabeth Weller at dallas.bankruptcy@publicans.com Northwest Natural Gas Company: Ashlee Minty at Ashlee.Minty@nwnatural.com Solar Drive Business, LLC: Chris W. Halling at challing@hallingmeza.com Market-Turk Company: Jordan A. Lavinsky at jlavinsky@hansonbridgett.com Taxing Authority for Harris County, Texas: John P. Dillman at houston_bankruptcy@lgbs.com Texas Comptroller of Public Accounts: Rachel Obaldo at rachel.obaldo@oag.texas.gov Clear Creek Independent School District: Carl O. Sandin at csandin@pbfcm.com Synchrony Bank: Recovery Management Systems Corporation at claims@recoverycorp.com Bexar County: Don Stecker at sanantonio.bankruptcy@publicans.com SWRE Deal V Building, LLC: Nancy K. Swift at nswift@buchalter.com TN Dept. of Revenue: Michael Willey at michael.willey@ag.tn.gov Florida Department of Education: Benman D. Szeto at benman.szeto@fldoe.org Last Second Media, Inc.: T. Todd Egland at tegland@beldenblaine.com Hung Duong: Kevin Schwin at kevin@schwinlaw.com Travis County: Kay D. Brock at kay.brock@traviscountytx.gov Able Building Maintenance: Scott D. Fink at bronationalecf@weltman.com Marathon Ventures, LLC: Daniel M. Karger at kargerlaw@gmail.com Oklahoma County Treasurer: Tammy Jones at tammy.jones@oklahomacounty.org JM Partners LLC: John Marshall at jmarshall@jmpartnersllc.com /s/ James E. Rossow Jr.

James E. Rossow Jr. g:\wp80\trustee\caruso\itt educational - 86723901\drafts\joint motion proceed ap federman.docx

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Exhibit 1

(Pretrial Scheduling Order)

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UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF INDIANA

INDIANAPOLIS DIVISION IN RE: ) ) ITT EDUCATIONAL SERVICES, INC., et al.1 ) Case No. 16-07207-JMC-7A ) Debtors. ) Jointly Administered ) ALLEN FEDERMAN, JOANNA CASTRO and ) STEVE RYAN on behalf of themselves and all ) Adv. Proceeding No. 16-50296 others similarly situated, ) ) Plaintiffs, ) ) v. ) ) ITT EDUCATIONAL SERVICES, INC. ) ) Defendant. )

PRETRIAL SCHEDULING ORDER

1 The debtors in these cases, along with the last four digits of their respective federal tax identification numbers are ITT Educational Services, Inc. [1311]; ESI Service Corp. [2117]; and Daniel Webster College, Inc. [5980].

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The Court, pursuant to Rules 7016 and 7026 of the Federal Rules of Bankruptcy

Procedure and Local Rule B-7016-1 of the United States Bankruptcy Court for the Southern

District of Indiana, hereby FINDS as follows:

1. On September 16, 2016, ITT Educational Services, Inc. (“ITT”), ESI Service

Corp. and Daniel Webster College, Inc. filed voluntary petitions for relief under chapter 7 of the

Bankruptcy Code.

2. On September 16, 2016, Plaintiffs initiated an adversary proceeding against ITT

by filing a Class Action Adversary Proceeding Complaint for Violation of WARN Act 29 U.S.C. §

2101, et seq. and California Labor Code §§ 1400, et seq. (“Adversary Proceeding”).

3. In the Adversary Proceeding, Plaintiffs allege that ITT violated the Federal

Worker Adjustment and Retraining Notification Act, 29 U.S.C. §§ 2101, et seq., and California

Labor Code §§ 1400, et seq. (together, the “WARN Acts”) and seek relief on behalf of

themselves and a putative class of former employees of ITT (“Putative WARN Act Class”). The

Trustee denies ITT violated the WARN Acts and denies the Putative WARN Act Class is

entitled to the relief requested.

4. On October 12, 2016, the Court entered an Order in the main case staying

prosecution of the claims brought under the WARN Acts pending a ruling on the appointment of

interim class counsel for the Putative WARN Act Class pursuant to Fed. R. Bankr. P. 7023(g)(3).

[Case No. 16-07207-JMC-7A, Docket No. 340].

5. On January 20, 2017, the Court appointed Outten & Golden LLP as interim class

counsel for the Putative WARN Act Class. [Case No. 16-07207-JMC-7A, Docket No. 981].

6. On April 18, 2018, the Court entered an Order Granting Agreed Motion for Entry

of A Protective Order Governing the Production of Confidential Information Exchanged

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Between Deborah J. Caruso, Chapter 7 Trustee of ITT Educational Services, Inc., and Putative

Class Representatives Allen Federman, Joanna Castro and Steven Ryan, et al. [Case No. 16-

07207-JMC-7A, Docket No. 2504].

7. Interim class counsel for the Putative WARN Act class has reviewed and

analyzed payroll data and the Parties have engaged in regular periodic conference calls in an

effort to narrow areas of disagreement and streamline the litigation process.

8. On March 25, 2019, the Parties held a discovery planning conference and

conferred regarding a proposed pretrial scheduling order.

9. The Parties have conferred and agree that the claims brought under the WARN

Acts should be litigated through this adversary proceeding, rather than as a contested matter in

the main case.

NOW, THEREFORE, the Court approves the following Pretrial Scheduling Order

governing certain case management deadlines, discovery and related matters:

IT IS HEREBY ORDERED that:

1. The Trustee shall file her Answer to Plaintiffs’ Complaint by May 8, 2019.

2. The Parties shall exchange initial disclosures under Fed.R.Civ.P. 26(a)(1) within

twenty-eight (28) days of the entry of this Pretrial Scheduling Order.

3. Any motion for leave to amend the pleadings shall be filed by September 12,

2019.

4. Absent agreement on class certification, Plaintiffs shall move for class

certification by July 24, 2019. The Trustee’s response shall be filed and served 90 days

thereafter, any reply filed and served 14 days after service of the response, and any sur-reply

filed and served 7 days after service of the reply.

5. All non-expert witness discovery shall be completed by March 10, 2020.

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6. Plaintiffs shall serve any expert disclosures and reports by April 10, 2020. The

Trustee shall serve any expert disclosures and reports by April 24, 2020. All reports shall provide

the information required by Fed.R.Civ.P. 26(a)(2)(B). The Parties may elect to provide rebuttal

expert reports. Any such reports must be served by May 15, 2020.

7. Notwithstanding the provisions of paragraph 6, if a Party intends to use expert

testimony in connection with a motion for summary judgment to be filed by that party, such

expert disclosures must be served on opposing counsel no later than 90 days prior to the

dispositive motion deadline. If such expert disclosures are served the parties shall confer within 7

days to stipulate to a date for responsive disclosures (if any) and completion of expert discovery

necessary for efficient resolution of the anticipated motion for summary judgment.

8. All expert witness discovery shall be completed by June 17, 2020.

9. All dispositive motions shall be filed and served no later than July 17, 2020.

10. A status conference is set on _____________________ at ___ .m. for the purpose

of (i) setting deadlines for the exchange of additional information and filings, including the

pretrial disclosures required by Fed.R.Civ.P. 26(a)(3), final witness and exhibit lists and motions

to preclude exhibits and witness testimony, (ii) setting dates for the pretrial conference and trial

and, (iii) addressing such other issues as the Court or the parties deem necessary and appropriate.

###

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Exhibit 2

(Proposed Order)

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2

UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF INDIANA

INDIANAPOLIS DIVISION IN RE: ) ) ITT EDUCATIONAL SERVICES, INC., et al.1 ) Case No. 16-07207-JMC-7A ) Debtors. ) Jointly Administered ORDER GRANTING JOINT MOTION BETWEEN DEBORAH J. CARUSO, CHAPTER

7 TRUSTEE OF ITT EDUCATIONAL SERVICES, INC., AND PUTATIVE CLASS REPRESENTATIVES ALLEN FEDERMAN, JOANNA CASTRO AND STEVEN

RYAN, ET AL TO (1) PROCEED WITH WARN ACT CLAIMS AND ITS STATE LAW ANALOGUES IN A SINGLE ADVERSARY PROCEEDING

AND (2) DISMISS ALL OTHER PROCEEDINGS AND CONTESTED MATTERS INVOLVING THE SAME CLAIMS

THIS MATTER comes before the Court on the Joint Motion Between Deborah J.

Caruso, Chapter 7 Trustee of ITT Educational Services, Inc., and Putative Class Representatives

Allen Federman, Joanna Castro and Steven Ryan, et al. to (1) Proceed with WARN Act Claims

and its State Law Analogues in a Single Adversary Proceeding and (2) Dismiss or Consolidate

All Other Proceedings and Contested Matters Involving the Same Claims (“Motion”) [Doc

1 The debtors in these cases, along with the last four digits of their respective federal tax identification numbers are ITT Educational Services, Inc. [1311]; ESI Service Corp. [2117]; and Daniel Webster College, Inc. [5980].

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____], jointly filed by Deborah J. Caruso, the chapter 7 trustee in this case and putative class

representatives Allen Federman, Joanna Castro and Steve Ryan, on behalf of themselves and all

others similarly situated (“Putative Federman Class”).

The Court, having reviewed the Motion and having convened a hearing on May 1, 2019,

and being otherwise duly advised, now APPROVES the Motion and ORDERS as follows:

1. All claims brought under the WARN Act and its state law analogues shall be

litigated in the action initiated by the Putative Federman Class pending in Adversary Proceeding

No. 16-50296, which was filed by interim class counsel for the WARN Act claimants.

2. The Class Action Adversary Proceeding Complaint for (1) Violation of the WARN

Act 29 U.S.C. § 2101, et seq. and (2) State Wage Payment Laws filed in the action entitled Artis,

et al. v. ITT Educational Services, Inc. (Adv. Proc. No. 16-50298) on September 20, 2016 by

Plaintiffs Dennis Artis, Donna A. Lindsay and Patricia Marshall, on their own behalf and on

behalf of a putative class of others similarly situated (the “Putative Artis Class”), be and hereby

is dismissed.

3. The class proof of claim based on ITT’s alleged violations of the WARN Act filed

on September 20, 2016 in Case No. 16-07207 [Claim No. 3] by the Putative Artis Class, be and

hereby is deemed withdrawn, and the Trustee is authorized to update the claims register

accordingly.

4. The class proof of claim based on ITT’s alleged violations of the WARN Act filed

on September 23, 2016 in Case No. 16-07207 [Claim No. 15] by Christin M. Long, on her own

behalf and on behalf of a putative class of others similarly situated, be and hereby is deemed

withdrawn, and the Trustee is authorized to update the claims register accordingly.

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5. The proposed Pretrial Scheduling Order attached as Exhibit 1 to the Motion be

and hereby is approved and shall be uploaded in Adversary Proceeding No. 16-50296.

###

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