Browsed by
Author: Peter Vodola

In Seeking To Recover Money Paid To Claimant, Litigation Funding Company Prevails On Some Legal Grounds

In Seeking To Recover Money Paid To Claimant, Litigation Funding Company Prevails On Some Legal Grounds

It is a legal maxim that when a contract is illegal, courts will leave the parties where they find them.  The result is that, if a party to a contract tries to recover on the contract, it will not get any aid from the courts.  But what if the claim is not enforcement of the illegal contract, but a request for recovery of monies paid pursuant to the unenforceable contract – on an equitable theory of unjust enrichment?  There, the…

Read More Read More

No Proof That Factoring Company Notified California Attorney General, Payee, Others, Says Court In Rejecting Proposed Transfer

No Proof That Factoring Company Notified California Attorney General, Payee, Others, Says Court In Rejecting Proposed Transfer

The payee changed his mind about selling his settlement payment rights, and the factoring company provided the court with no proof of service on interesting parties and included a prohibited provision in its proposed contract, so a California court recently issued a ruling rejecting a proposed transfer of structured settlement payment rights. Orange County, California, Superior Court Judge Robert J. Moss issued a May 18, 2018 tentative order denying the petition for court approval, under the California Structured Settlement Protection…

Read More Read More

News Reports Highlight Developments in Woodbridge Bankruptcy, SEC Proceedings

News Reports Highlight Developments in Woodbridge Bankruptcy, SEC Proceedings

The Woodbridge Group of Companies, LLC, filed for bankruptcy in December, shortly before the Securities and Exchange Commission filed a lawsuit alleging the company ran a billion-dollar Ponzi scheme. Other lawsuits followed, and this month, there have been news reports about developments in the bankruptcy proceeding, the SEC lawsuit, and other actions involving the company – a company that perhaps was perhaps best known for real estate investments but whose businesses also included structured settlement factoring companies Woodbridge Structured Funding, Ash…

Read More Read More

‘Borrowing in the Shadow of Death’ Takes a Look at Another Type of ‘Fringe Lending’ – Probate Lending

‘Borrowing in the Shadow of Death’ Takes a Look at Another Type of ‘Fringe Lending’ – Probate Lending

Here at Secondary Insurance Market Blog, we have examined legal issues involving secondary markets for insurance products from the point of view of insurers and other non-lending parties whose interests may be adversely affected by such transactions. The types of such transactions include life settlements, litigation funding, pension factoring, and secondary markets for annuities, lottery payments, and for structured settlement payment rights. Occasionally, we delve into analogous transactions – such as those for entertainment tickets, or the payday loan business…

Read More Read More

Judge Overseeing Consolidated Opioid Litigation Wants Litigation Funding Information

Judge Overseeing Consolidated Opioid Litigation Wants Litigation Funding Information

The judge overseeing the multi-district litigation claims involving the opioid epidemic has ordered plaintiffs’ attorneys to disclose whether they have entered into any litigation funding agreements. U.S. District Court Judge Dan Polster, of the U.S. District Court for the Northern District of Ohio, is overseeing several hundred consolidated lawsuits where many government entities – including states and cities – have sought recovery from drugmakers and distributors for the costs of dealing with opioid addiction.  Plaintiffs have claimed that the pharmaceutical…

Read More Read More

Florida Court Rules That Factoring Company Failed To Include Statutorily-Required Choice-Of-Venue Clause In Proposed Contract

Florida Court Rules That Factoring Company Failed To Include Statutorily-Required Choice-Of-Venue Clause In Proposed Contract

The Florida court that recently rejected a proposed transfer of structured settlement payment rights because the transaction violated New York’s structured judgment law also addressed the fact that the proposed contract did not contain a provision required under Florida law. In the opinion in In Re: Approval Of Transfer Of Structured Settlement Payment Rights Between JLC Capital Funding and Ortega, Case No.: 16-CA-003649, 2018 WL 1896171, Circuit Court, Lee County, Fla. (Fla. Cir. Ct. Mar. 28, 2018), the Florida Circuit Court…

Read More Read More

New York’s Structured Settlement Protection Act Falls Within Scope Of ‘Applicable Law’ In Florida Protection Act Proceeding, Says Court

New York’s Structured Settlement Protection Act Falls Within Scope Of ‘Applicable Law’ In Florida Protection Act Proceeding, Says Court

A Florida court recently rejected a proposed transfer of structured settlement payment rights, on the grounds that New York’s structured judgment law barred the transfer. The proceeding was filed by factoring company JLC Capital Funding, and sought approval of the transfer pursuant to the Florida Structured Settlement Protection Act. The Florida judge ruled that the New York structured judgment law, Article 50-B of New York’s Civil Practice Law & Rules § 5041 et seq., fell within the scope of “applicable…

Read More Read More

New York’s Structured Judgment Law Bars Settlement Factoring Deal, Says Court

New York’s Structured Judgment Law Bars Settlement Factoring Deal, Says Court

New York’s structured judgment statutes are found in Civil Practice Law & Rules Sections 50-A and 50-B.  Section 50-A is entitled “Periodic Payment of Judgments in Medical and Dental Malpractices Actions”, and Section 50-B is called “Periodic Payment of Judgments in Personal Injury, Injury to Property, and Wrongful Death Actions”.  Both require, under certain circumstances, that certain awards to claimants be paid over time.  Both also provide that such payments over time are non-assignable, except in certain circumstances.  In particular,…

Read More Read More

Kansas Appeals Court Says Suspended Lawyer Did Not Demonstrate an Interest to Justify Intervention – But If He Had, It Would Have Been Barred By the Public Policy Against Champerty

Kansas Appeals Court Says Suspended Lawyer Did Not Demonstrate an Interest to Justify Intervention – But If He Had, It Would Have Been Barred By the Public Policy Against Champerty

A Kansas appellate court affirmed a lower court decision to reject the motion to intervene of a suspended lawyer to intervene in a personal injury case, saying that the same Kansas public policy against champerty would have barred his interest – if he had demonstrated a sufficient interest to justify intervention.  In Massali v. Farmers Ins. Co., No. 117464 (Kan. Ct. App. Apr. 18, 2018), the Kansas appellate court summed up the case as follows: Maria E. Massali was injured…

Read More Read More

Wisconsin Enacts First-In-Nation Law Requiring Disclosure of Litigation Funding Agreements

Wisconsin Enacts First-In-Nation Law Requiring Disclosure of Litigation Funding Agreements

Civil litigants  in Wisconsin state court will have to disclose any litigation funding agreements under a bill signed into law by that state’s Governor Scott Walker earlier this month. It’s the first state law of its kind, according to published reports. The law revises the state’s requirements for discovery in civil litigation. A National Law Journal article about the new law is available (behind subscription wall) here and a press release from U.S. Chamber of Commerce’s Institute for Legal Reform is…

Read More Read More