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Kentucky Supreme Court Joins Other State Appeals Courts In Enforcing Contractual Anti-Assignment Provisions In Structured Settlements

Kentucky Supreme Court Joins Other State Appeals Courts In Enforcing Contractual Anti-Assignment Provisions In Structured Settlements

As discussed here, the Kentucky Supreme Court recently held that that state’s structured settlement protection act does not apply to workers’ compensation settlements. In reversing an opinion of an intermediate appellate court, the Kentucky Supreme Court in American Gen. Life Ins. Co. v. DRB Capital, LLC, 2017-SC-000329-DG, 2018 Ky. LEXIS 535 (Ky. Dec. 13, 2018), also extensively discussed anti-assignment provisions in structured settlements.  In concluding that the anti-assignment clauses in the structured settlement agreement, qualified assignment agreement, and annuity contract were…

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Kentucky Supreme Court Rejects Factoring Of Workers’ Compensation Settlement Payments

Kentucky Supreme Court Rejects Factoring Of Workers’ Compensation Settlement Payments

The Kentucky Supreme Court has reversed a lower appeals court decision involving the Kentucky Structured Settlement Protection Act, and rejected an attempt by a factoring company to effectuate a transfer of workers’ compensation settlement. In American Gen. Life Ins. Co. v. DRB Capital, LLC, 2017-SC-000329-DG, 2018 Ky. LEXIS 535 (Ky. Dec. 13, 2018), Kentucky’s highest court held that the Kentucky Structured Settlement Protection Act did not apply to workers’ compensation settlement payments. The matter involved a proposed transfer of structured…

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Oregon Appellate Court Enforces Contractual Anti-Assignment Provision to Preclude Structured Settlement Factoring Transaction

Oregon Appellate Court Enforces Contractual Anti-Assignment Provision to Preclude Structured Settlement Factoring Transaction

An Oregon appellate court recently gave effect to a contractual anti-assignment provision to preclude a structured settlement factoring transaction. In Johnson v. J.G. Wentworth Originations, LLC, 284 Ore. App. 47, 2017 Ore. App. LEXIS 280  (Ore. Ct. App. Mar. 1, 2017), the Oregon Court of Appeals reversed a trial court’s decision to approve a transfer of structured settlement payment rights, saying that the insurer with payment obligations had the right to enforce the contractual prohibition against such a transfer. The decision…

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Pennsylvania Court Determines That Federal Workers’ Compensation Statute Prohibits Assignment of Structured Settlement Payments

Pennsylvania Court Determines That Federal Workers’ Compensation Statute Prohibits Assignment of Structured Settlement Payments

Do workers’ compensation laws prohibit secondary market transactions involving structured settlement payments?  Where the structured settlement resolved a workers’ compensation matter, the general rule is that such transactions would contravene the prohibition against assignment of compensation that appear in the vast majority of state workers’ compensation laws. Factoring companies sometimes argue that there are exceptions to the general rule that allow such transactions in certain circumstances or under the laws of particular jurisdictions. A Pensylvania court just rejected that line of reasoning, in…

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