A factoring company provided a disclosure statement to structured settlement payee that explained the terms of the transaction:
- $478,590.82 was the aggregate amount of all the future structured settlement payments that would be sold from the payee to the factoring company.
- In exchange for those payments, the payee would receive $10,000.
The reviewing court rejected the request for judicial approval of the transaction – a prerequisite for the transaction to become legally effective under the New York Structured Settlement Protection Act. Said the judge: “This Court concludes that the proposed sale of the payee’s structured settlement payments to petitioner is not fair and reasonable and does not serve the best interest of the payee . . . .” The Dutchess County, New York, judge also noted that, “[a]dditionally, the structured settlement payee’s willingness to transfer the settlement proceeds has no bearing on this Court’s determination of whether the transfer is fair and reasonable.”
The case is captioned Matter of J.G. Wentworth Originations, LLC (Kwant), Index No. 52903/2018, 2018 N.Y. Misc. LEXIS 5584 (N.Y. Sup. Ct. Dec. 4, 2018), and is available here.