Maryland’s courts in 2016 will have a new rule governing matters involving structured settlement factoring proceedings, the state’s highest court decided recently.
The rules were published last month and, with some changes, adopted last week by Maryland Court of Appeals.
The rules will apply in matters filed in the state under the Maryland Structured Settlement Protection Act, which provides that personal injury victims – who previously settled by way of a structured settlement and are considering selling future payments rights to a factoring company for an immediate, discounted payment – can only effectuate such transactions if they are approved by court order, and meet other criteria.
A news story by Washington Post reporter Terrence McCoy described the Maryland rule adoption as involving “sweeping changes that will drastically change how companies purchase the rights to legal settlement payouts . . . .”
Said the report, Maryland court approves new rules on firms that buy rights to settlement payouts (available here):
To help judges ascertain the seller’s cognitive capacity, the [rule] changes require all recipients to appear in court at the hearings. Their counselor must also submit biographical information about them, specifying whether the seller had sold payments in the past — and at what rate — as well as whether he or she was a victim of lead-paint poisoning or alleged to be cognitively impaired.
For more about the judicial rule for Maryland Structured Settlement Protection Act matters, see the previous posts on Secondary Insurance Market Blog:
- Washington Post Editorial: Maryland’s Judicial Rules For Structured Settlement Protection Act Matters Are A Needed Step (available here);
- Factoring Company Concerns ‘Overstated’ Says Maryland Committee That Has Proposed Structured Settlement Protection Act Rules (available here); and
- Payees, Independent Advisors Must Appear at Hearings If Maryland Judges Adopt Newly-Proposed Rules for Settlement Factoring Matters (available here).
The rules are scheduled to go into effect January 1, 2016.