The Connecticut Structured Settlement Protection Act is one of 49 state statutes that provide that a transaction involving the sale or loan or the right to receive future structured settlement payments is ineffective unless the purchaser meets certain requirements such as providing a disclosure statement to the individual seller.
Perhaps the most important requirement is that the purchaser (the “transferee”, in the words of the statute, which is usually a factoring company) must begin a court proceeding and bring the transaction before a judge.
As of tomorrow, under the Connecticut SSPA, that judge can now be a probate judge.
The Connecticut legislature earlier this year revised the state’s SSPA, to add the following provision:
An application for approval of the transfer of structured settlement payment rights by a conservator or guardian appointed by a Probate Court of this State shall be brought by the transferee in the Probate Court having jurisdiction over the conservator or guardian. Upon the filing of an application in a Probate Court under this Section, the Court shall give notice of the time and place of the hearing by First Class mail to the interested parties and to the parties to the conservatorship or guardianship matter. The Court shall hear and decide the matter in accordance with the provisions of Sections 52-225G to 52-225l, inclusive.
The Connecticut SSPA’s provision in Sections 52-225g to 52-225l of the Connecticut General Statutes require that the transferee file the application to Connecticut’s trial level Superior Court. Those sections also provide that the transferee is to provide notice to interested parties of the hearing on the transfer. In fact, as the party in the position of the plaintiff, the transferee has the burden of proving complying with the SSPA and proving to the court that it is entitled to the relief it seeks.
This provision is effective October 1, 2017. So, new applications for judicial approval of transfers of structured settlement payment rights in Connecticut are still to be filed in Superior Court – unless the transfer involves a proposed transfer by a conservator or guardian, and in those cases the application is to be filed in Probate Court, and the Court is to send a hearing notice to interested parties.