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Category: Structured Settlements

Michigan Appeals Court Affirms Attorneys’ Fees Award in Structured Settlement Protection Act Dispute, Where Factoring Company Did Not Comply with Statute

Michigan Appeals Court Affirms Attorneys’ Fees Award in Structured Settlement Protection Act Dispute, Where Factoring Company Did Not Comply with Statute

The Michigan Court of Appeals last week affirmed an award of attorneys’ fees to insurers based on a factoring company’s failure to comply with the state’s structured settlement protection act. J.G. Wentworth S.S.C. v. Morris, No. 333413, 2018 Mich. App. LEXIS 347 (Mich. Ct. App. Feb. 22, 2018), involved a dispute over a single structured settlement payment due to be paid in 2015 to payee Anthony Morris.  Between 1998 and 2007, Morris entered into a series of transactions whereby he…

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Virginia Lawyers Weekly Reports on Class Action Complaint Challenging Settlement Factoring Deals

Virginia Lawyers Weekly Reports on Class Action Complaint Challenging Settlement Factoring Deals

On the same day that largest Virginia-based newspaper reported on a putative class action alleging a scheme to defraud structured settlement Virginia Lawyers Weekly on February 2nd reported on the putative class-action complaint filed last year alleging that a Virginia legislator and some Virginia judges were complicit in a scheme with factoring companies aimed at deprive structured settlement payees of their rights. The article, Delegate sued over structured settlement sales, is available here (subscription required). The article reports that the complaint…

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Law Professor Also Looks at Idea of Ban on Factoring By Lead Poisoning Victims From Viewpoint of Taxpayers, Parents, Investors

Law Professor Also Looks at Idea of Ban on Factoring By Lead Poisoning Victims From Viewpoint of Taxpayers, Parents, Investors

In her article calling for a ban on transfers of structured settlement payment rights by lead poisoning victims (described here, here, and here), law school Professor Karen Syma Czapanskiy’s article analyzes some of the issues from the point of view of investors in such transactions, as well as from the viewpoint of taxpayers. Among the University of Maryland professor’s additional comments are the following. Banning Sales Protects the Taxpayer:  “[B]anning sales would . . . protect the community and the…

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In Calling For Ban on Settlement Factoring Transactions by Lead Poisoning Victims, Law Professor Says Current Laws Are Inadequate

In Calling For Ban on Settlement Factoring Transactions by Lead Poisoning Victims, Law Professor Says Current Laws Are Inadequate

Current laws regarding the sale of structured settlement payment rights are inadequate to protect lead-poisoning victims. So says law school Professor Karen Syma Czapanskiy in her recent article, “Structured Settlement Sales and Lead-Poisoned Sellers: Just Say No”, in the Virginia Environmental Law Journal (36 Va. Envtl. L. J. 1). The University of Maryland School of Law professor argues that sales of structured settlement payment rights by lead poisoning victims should be banned. Professor Czapanskiy offered a number of criticisms of…

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Law Professor’s Article Describes Circumstances, Legal Landscape For Parents and Others, in Pointing Out that Lead Poisoning Victims Are Especially ‘Exploitable’

Law Professor’s Article Describes Circumstances, Legal Landscape For Parents and Others, in Pointing Out that Lead Poisoning Victims Are Especially ‘Exploitable’

Law school professor Karen Syma Czapanskiy’s recent law review article advocates a ban on transfers of structured settlement payment rights when the payee is a lead poisoning victim. She also makes a number of other thought-provoking comments in her article is entitled “Structured Settlement Sales and Lead-Poisoned Sellers: Just Say No”, appearing in the Virginia Environmental Law Journal (36 Va. Envtl. L. J. 1). Professor Czapanskiy, a professor at the University of Maryland School of Law, wrote about the prevalence…

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Ban Factoring Where Structured Settlement Payee Is A Lead Poisoning Victim, Advocates Maryland Law School Professor

Ban Factoring Where Structured Settlement Payee Is A Lead Poisoning Victim, Advocates Maryland Law School Professor

A 2018 law review article poses the question of whether structured settlement factoring transactions by lead-poisoning victims should be permissible under the law – and concludes “that allowing such sales is unjustifiable”. The article, “Structured Settlement Sales and Lead-Poisoned Sellers: Just Say No”, by University of Maryland School of Law Professor Karen Syma Czapanskiy, appears in a recent edition of the Virginia Environmental Law Journal (36 Va. Envtl. L. J. 1). Professor Czapanskiy begins her article describing the most famous…

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Newspaper Focuses On Legislator’s Role While Parties Battle Over Possible Dismissal of Settlement Factoring Lawsuit

Newspaper Focuses On Legislator’s Role While Parties Battle Over Possible Dismissal of Settlement Factoring Lawsuit

As the parties to a putative class-action battle over whether a case involving structured settlement factoring should be dismissed, the dispute has drawn additional attention from a news publication that has underscored the fact that one of the defendants is a Virginia legislator. In this action, Plaintiffs allege that a Virginia lawmaker, Stephen Heretick, and several Virginia state court judges were complicit in a scheme to defraud personal injury victims. As reported today by the Virginia Pilot, this scheme involved…

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In J.G. Wentworth’s Second Bankruptcy, Trustee Objects, But Court Approves Plan

In J.G. Wentworth’s Second Bankruptcy, Trustee Objects, But Court Approves Plan

Settlement factoring company J.G. Wentworth has emerged from its second bankruptcy in less than a decade. Judge Kevin Gross, of the U.S. Bankruptcy Court for the District of Delaware, earlier this month issued an order confirming a prepackaged reorganization plan of J.G. Wentworth based on an agreement with its lenders. A trustee had objected to the plan (see “JG Wentworth Ch. 11 Plan Approved Over Trustee Objection”, Law360 (subscription required), available here), but nonetheless the court approved the plan on…

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Another Secondary Market Company Files For Bankruptcy

Another Secondary Market Company Files For Bankruptcy

Less than a month after the bankruptcy filing of J.G. Wentworth (as described here), another settlement factoring company has filed for bankruptcy. Woodbridge Structured Funding is one of the Woodbridge companies that has sought bankruptcy protection. Many news stories describe not only the bankruptcy filing but also the Securities and Exchange Commission’s probe.  Among the stories are the following: “Property Group Woodbridge Files For Bankruptcy Amid SEC Probe”, Reuters, available here; “Woodbridge Bankruptcy Burns Advisers And Real Estate Investors”, Investment…

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In NFL Concussion Settlement Litigation, Company Appeals Ruling That Enforced Anti-Assignment Provision To Nullify Deals With Ex-Players

In NFL Concussion Settlement Litigation, Company Appeals Ruling That Enforced Anti-Assignment Provision To Nullify Deals With Ex-Players

A ruling in December by the judge overseeing the $1 billion settlement between the National Football League and ex-players with cognitive-disability claims stemming from their football playing careers has now led to an appeal. The ruling – that a contractual anti-assignment clause (in the settlement agreement between the ex-players and the NFL) rendered void any assignment agreements between the ex-players and litigation funding companies – is being appeal by one of the litigation funding companies. RD Legal Funding filed the…

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