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Author: Katherine Scanlon

While Pennsylvania Law Requires That Court Be Given Accurate Details About Settlement Factoring, Vigilant Judge May Be The Best Protection Against ‘Unreliable’ Information

While Pennsylvania Law Requires That Court Be Given Accurate Details About Settlement Factoring, Vigilant Judge May Be The Best Protection Against ‘Unreliable’ Information

The Pennsylvania Structured Settlement Protection Act is the statute that led to a request for judicial approval of a proposed transaction involving a Penn State University sexual abuse settlement. That matter, described in more detail here, led a Pennsylvania judge this month to reject to purchasing company’s “abysmal” deal. The Pennsylvania Structured Settlement Protection Act, like all forty-nine state SSPAs, provides that a structured settlement payee (like the victim in the Penn State case) can sell the rights to future…

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Like Sharks ‘With Blood In The Water’: News Report Says Judge Criticizes Factoring Company For ‘Abysmal’ Structured Settlement Transfer Proposal And ‘Completely Unreliable’ Court Filings

Like Sharks ‘With Blood In The Water’: News Report Says Judge Criticizes Factoring Company For ‘Abysmal’ Structured Settlement Transfer Proposal And ‘Completely Unreliable’ Court Filings

A Pennsylvania judge this week said that structured settlement factoring companies were like “sharks” with “blood in the water” before rejecting a proposed factoring transaction – involving nearly $3 million in future payments – that was “abysmal” and involved court-filed papers that were “completely unreliable”. That’s what was reported by a newspaper in West Chester, Pennsylvania, the Daily Local News, in an article headlined Judge Denies Payout In PSU Victim’s Case. The newspaper reported that the structured settlement payee was a victim…

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N.Y. Post: Sellers Of J.G. Wentworth May Settle For ‘Discounted’ Value

N.Y. Post: Sellers Of J.G. Wentworth May Settle For ‘Discounted’ Value

The New York Post reported on Thursday that the owners of J.G. Wentworth “may have to settle for a discounted payment of their own.” That’s because JLL Partners, owners of secondary insurance market company J.G. Wentworth, has received bids to buy the company at “as much as 20 percent shy of its $1 billion asking price . . . .” One reason for the “discounted” present value, according to the Post report, is that “the company operates in a highly…

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Court Rejects Structured Settlement Factoring Deal Where Unemployed Payee Did Not Provide Information About Education, Skills, or Job Search

Court Rejects Structured Settlement Factoring Deal Where Unemployed Payee Did Not Provide Information About Education, Skills, or Job Search

What happens when a court is asked to approve a transfer of structured settlement payment rights, but it does not have information – about the unemployed structured settlement payee’s education, skills and job search – that it believes is necessary to determine whether the transfer is in the payee’s best interest? The court denies the request for judicial approval of the transfer. At least, that’s what the New York trial court did in a case earlier this month, captioned In…

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Federal Court: Insurer Can Keep STOLI Policy Premium

Federal Court: Insurer Can Keep STOLI Policy Premium

One question that comes up regularly in litigation involving stranger-originated life insurance (STOLI) is whether, if the insurance policy is rescinded, the insurer is entitled to keep the premium, so as to avoid unjustly enriching a party that perpetrated a fraud. A federal district court this month addressed this question, concluding that the insurer is, in that case, entitled to keep the premiums. The case is PHL Variance Ins. Co. v. The P. Bowie 2008 Irrevocable Trust, C.A. No. 10-070-M…

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Legal Talk Network Posts Podcast Of Pete Vodola Discussing Factoring Of Structured Settlement Payments

Legal Talk Network Posts Podcast Of Pete Vodola Discussing Factoring Of Structured Settlement Payments

My partner, Pete Vodola, spoke recently with Ringler Radio host Larry Cohen and co-host Jim Early, about factoring of structured settlement payment rights.  The discussion ranged from factoring company practices to the Ceron v. 321 Henderson, No. B224935, 2011 WL 240243, California Court of Appeals (Calif. Ct. App. Jan. 26, 2011), opinion to the reasons that a judge might have for wanting to know what a person does with that $20 bill in their pocket.  It's an informative interview, and can be heard…

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For Over A Decade, Lawsuits Have Focused On Jurisdiction Under The Illinois Structured Settlement Protection Act

For Over A Decade, Lawsuits Have Focused On Jurisdiction Under The Illinois Structured Settlement Protection Act

As described here and here, the focus of some litigation has been on the proper forum under the Illinois Structured Settlement Protection Act. A few years ago, a series of two related matters, first in Illinois and then in Virginia, also turned on this same issue.  In Re: Morey, 71 Va. Cir. 435 (Va. Cir. Ct. 2005), is the Virginia matter, and the court's opinion also provides details about the earlier, related Illinois matter. In Morey, a Virginia circuit court denied…

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Court Upholds Jury’s Decision In STOLI Case That Incontestability Clause Bars Insurer From Rescinding Policy

Court Upholds Jury’s Decision In STOLI Case That Incontestability Clause Bars Insurer From Rescinding Policy

In a lawsuit that grew out of allegations that a life insurance policy was part of the STOLI transaction (and that was also discussed in this post), the United States District Court for the Southern District of New York upheld a jury's decision to award $5 million to Settlement Funding. Here is the court's summary of its latest decision: This case centers around a $5 million insurance policy (the “Policy”) issued by AXA Equitable Life Insurance Co. (“AXA”) on the life of non-party Esther…

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U.S. Attorney’s Office Says Massachusetts Man’s Fraudulent Life Settlements Transactions Defrauded Victims Of $4 Million

U.S. Attorney’s Office Says Massachusetts Man’s Fraudulent Life Settlements Transactions Defrauded Victims Of $4 Million

A Massachusetts is the subject of federal wire and mail fraud charges stemming from his involvement in a number of life settlements transactions, according to federal officials. Life and Health Insurance News reports that the "U.S Attorney’s office filed charges in Massachusetts district court against Joseph Gennaco, 67, of Winthrop, Mass., on five counts of wire fraud and 13 counts of mail fraud." He is said to have defrauded about 20 individuals of approximately $4 million. The full story from Life and…

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