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Author: Peter Vodola

New York Court Rejects Proposed Transfer Of Structured Settlement Payments By Lead Poisoning Victim

New York Court Rejects Proposed Transfer Of Structured Settlement Payments By Lead Poisoning Victim

When Andre Edwards came in front of New York Justice Debra Silver on the hearing on the latest proposed transfer of his structured settlement payment rights, he told her “that the settlement was for the brain damage he sustained as a child, due to lead poisoning.” Justice Silber also learned – during the course of the New York Structured Settlement Protection Act proceeding whereby a factoring company named Sunny Sky sought judicial approval of a proposed sale of some of the settlement…

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Court Reinstates Claims Against Attorney in Lawsuit Over Settlement Factoring Practices

Court Reinstates Claims Against Attorney in Lawsuit Over Settlement Factoring Practices

Just four months after dismissing all claims against a lawyer who provided independent professional advice for dozens of structured settlement factoring transactions, a federal court reinstated a claim against the lawyer by the Consumer Financial Protection Bureau (CFPB) that has claimed that such transactions involved abusive practices. The CFPB sought leave to file an amended complaint that alleged that structured settlement payees were unaware that attorney Charles Smith was, in fact, a lawyer – and therefore they lacked the intent…

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What Steps Should Factoring Companies Take to Ensure Non-Contravention Of Court Orders?

What Steps Should Factoring Companies Take to Ensure Non-Contravention Of Court Orders?

Forty-nine states have structured settlement protection acts – laws that say that if a person who is entitled to receive future structured settlement payments wants to sell the right to those payments to a factoring company in exchange for a more immediate (but lower) payment, then the transaction is not legally effective unless a court approves the deal. These SSPAs generally provide that a court can approve a transaction only where the court can find that such a transaction is…

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Following NFL Concussion Court’s Ruling, Interesting Timing For Article about Whether Litigation Funding Has ‘Shed Its Stigma’

Following NFL Concussion Court’s Ruling, Interesting Timing For Article about Whether Litigation Funding Has ‘Shed Its Stigma’

Law360 has interesting timing this month. A few days after a court issues perhaps the highest profile ruling involving litigation financing – striking as void agreements with NFL players in a class action over concussion and cognitive impairments suffered during their professional football careers (see the Secondary Insurance Market Blog post here) –  Law360 asks “Has Litigation Financing Shed Its Stigma?” A link to the Law360 article (mostly behind pay wall) is here.

Judge Overseeing Concussion Settlement Invalidates Litigation Funding Agreements with NFL Players

Judge Overseeing Concussion Settlement Invalidates Litigation Funding Agreements with NFL Players

A federal judge ruled last week that litigation funding agreements with National Football League players who are seeking to recover under the NFL’s concussion settlement agreement. In a sweeping ruling, U.S. District Court Judge Anita Broady held that the anti-assignment provision in the settlement agreement precluded the agreements where by the players sold their right to receive future settlement payments in order to receive more immediate sums from the litigation funders. The high-profile concussion settlement involves former NFL players who settled…

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Will NFL ‘Feeding Frenzy’ Lead to ‘Watershed’ Moment – and Greater Disclosure – for Litigation Funding?

Will NFL ‘Feeding Frenzy’ Lead to ‘Watershed’ Moment – and Greater Disclosure – for Litigation Funding?

The news in July was that litigation funding companies were engaging in a “feeding frenzy” of agreements with former National Football League players who could be among the nearly 5,000 NFL veterans entitled to a share of the $1 billion concussion claims settlement. The latest news reports two new twists: that the agreements are being challenged en masse, in ways that involve some unusual procedural means, and that a lead attorney in the concussion lawsuit – who has voiced criticisms of…

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Virginia Court Ruling Allows Payee’s Challenge to Factoring Transactions to Proceed

Virginia Court Ruling Allows Payee’s Challenge to Factoring Transactions to Proceed

The legal rulings in SAF Funding, LLC v. Taylor, Case No. CL-3022, 2017 Va. Cir. LEXIS 316 (Va. Cir. Ct. Oct. 27, 2017), are many and follow a long and complicated history, but the bottom line is this: the structured settlement payee who is challenging factoring transactions may proceed with his lawsuit. In the ruling, the Virginia Circuit Court for City of Portsmouth addressed a number of ancillary issues, but the key determination was that the payee would be allowed to try…

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Report: J.G. Wentworth To File For Second Bankruptcy In Less Than A Decade

Report: J.G. Wentworth To File For Second Bankruptcy In Less Than A Decade

The Philadelphia Business Journal on Friday reported that J.G. Wentworth will file for bankruptcy, the second bankruptcy filing by the factoring company in less than a decade. The Business Journal said the Pennsylvania “company reached an agreement with lenders to significantly reduce its debt and enhance its balance sheet” and that the “agreement also calls for the board of directors the be reconstituted to reflect new ownership of the company.” In addition, according to the report, the “restructuring will be…

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Federal Court in Florida Says Putative Class Action Challenging Litigation Funding Practices Should Be In Illinois State Court

Federal Court in Florida Says Putative Class Action Challenging Litigation Funding Practices Should Be In Illinois State Court

A putative class action filed against a litigation funding company – claiming that the company violated usury, lending practices, and other laws – has been dismissed as filed in the wrong forum, although the plaintiff may seek to proceed in another jurisdiction. In Smith v. Oasis Legal Fin., LLC, Case No. 8:17-cv-2163-T-33JSS, 2017 U.S. Dist. LEXIS 180081 (M.D. Fla. Oct. 31, 2017), the court dismissed the case under the doctrine of forum non conveniens, adding that because the court decided “that the case…

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Appeals Court Affirms Dismissal of Antitrust, False Advertising Claims Brought by One Factoring Company Against Another

Appeals Court Affirms Dismissal of Antitrust, False Advertising Claims Brought by One Factoring Company Against Another

A federal court of appeals affirmed the dismissal of factoring company’s lawsuit against another factoring company over practices that allegedly violated antitrust, false advertising and other unfair trade practices. The Ninth Circuit Court of Appeals last week affirmed the decision by the U.S. District Court for the Central District of California to dismiss the complaint filed by Novation Ventures, LLC, against J.G. Wentworth and affiliated companies, including Peachtree Financial. About Novation’s antitrust claims, the Ninth Circuit said in Novation Ventures…

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