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Category: Structured Settlements

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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Ohio Revises Structured Settlement Protection Act, Adding Interest Rate Disclosure and Payee Appearance Requirements

Ohio Revises Structured Settlement Protection Act, Adding Interest Rate Disclosure and Payee Appearance Requirements

Ohio Governor John Kasich last week signed into law a bill revising the Ohio Structured Settlement Protection Act, making some fairly extensive revisions that include eliminating the requirement that a payee receive independent professional advice,  doing away with the express mandate that the court that created the structured settlement also approve the transfer, and adding a requirement that the payee must personally appear at the hearing on the transfer. This is the first revision to the Ohio SSPA since it was…

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In Time Frame Leading Up to Latest Bankruptcy, J.G. Wentworth Says It Faced Increased Competition in Settlement Factoring Business

In Time Frame Leading Up to Latest Bankruptcy, J.G. Wentworth Says It Faced Increased Competition in Settlement Factoring Business

As described in a blog post here, J.G. Wentworth last month filed for its second bankruptcy in less than a decade. More recently, J.G. Wentworth, in filings with the bankruptcy court, said that in recent years it faced increased competition among companies that seek to purchase future structured settlement payment rights. In a disclosure statement filed in the bankruptcy proceeding, the company said that, in existing to existing competitors, “the Company faced increased competition from numerous smaller entrants to the market…

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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 Silber 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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