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If Adviser Is To Be Paid From Proceeds Of Transfer, Advice Is Not Independent And Structured Settlement Protection Act Standards Have Not Beet Met

If Adviser Is To Be Paid From Proceeds Of Transfer, Advice Is Not Independent And Structured Settlement Protection Act Standards Have Not Beet Met

What happens if a payee receives the advice of a professional advisor about a proposed transaction, and the advisor’s compensation depends on whether the transaction happens? If the transaction is a proposed transfer of structured settlement payment rights under the Minnesota Structured Settlement Protection Act, then the deal cannot receive court approval and thus will never be a legally effective transaction. That was the opinion in a 2011 opinion of a Minnesota trial court, Teasley v. Velardi, No. 27-CV-1473, 2011…

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A Few Words About Minnesota, Prior Transfer, and Advertising

A Few Words About Minnesota, Prior Transfer, and Advertising

As described in this post, the state of Minnesota has revised its structured settlement protection act to require that courts be provided with information about prior transfer attempts by the same payee. Thus, when a factoring company files a petition seeking court approval, under the Minnesota SSPA, of a proposed transfer of structured settlement payment rights, the company must include with the petition certain details about any transfers, or attempted transfers, involving the same payee. In particular, the revised Minnesota SSPA…

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Payee’s Prior Transfer History Was A Key Consideration In Minnesota Court’s Rejection Of Settlement Factoring Deal

Payee’s Prior Transfer History Was A Key Consideration In Minnesota Court’s Rejection Of Settlement Factoring Deal

As described in posts here and here, a Minnesota trial court recently denied a request for court approval of a proposed transfer of structured settlement payment rights, on the grounds that the transfer was not in the payee's best interests and that the payee had not received independent professional advice.  Either of those grounds – failure to meet the best interest standard, and failure to receive independent professional advice – means that the court must reject the request for court…

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