“Unjustifiable and unsupportable.”
These are some of the terms used by a New York judge, in an opinion issued last month, to describe a proposed transfer of structured settlement payment rights.
Justice Jeffrey Allen Spinner issued the opinion in the case of Matter of BofI Federal Bank v. Casey, Index No.: 2013-63262, 2014 N.Y. Misc. LEXIS 281, 2014 NY Slip Op. 30197(U) (N.Y. Sup. Ct. Jan. 17, 2014). One key portion of the opinion includes the choice adjectives listed above:
Viewing the instant application in toto, this Court finds the confluence of all of the enumerated factors to be, at the very least, greatly troubling. As to the issue of whether or not the transaction is fair and reasonable, the Court finds the Petition to be severely wanting. Respondent CASEY is entitled to receive future payments aggregating of $ 652,278.40. The discounted present value of those payments, according to Petitioenr BOFI’S calculation, stands at $ 466,271.07. Petitioner BOFI offers to pay to Respondent CASEY the gross amount of $ 15,000.00 in exchange for these payments, representing but 3.22% of the discounted present value and only 2.30% of the full value of the payments. This, on its face and without more, seems unconscionable and, lacking any further illumination because it is, perhaps, unjustifiable and insupportable.
The full opinion is available here.