Browsed by
Tag: “structured settlement factoring” “structured settlement protection” SSPA “New York Structured Settlement Protection” “New York SSPA” “New York structured settlement” “best interest” “fair and reasona

Attorney Appearing With Payee Was Paid By Factoring Company, So No ‘Independent Professional Advice’ Under New York’s Structured Settlement Protection Act

Attorney Appearing With Payee Was Paid By Factoring Company, So No ‘Independent Professional Advice’ Under New York’s Structured Settlement Protection Act

As described here, a New York court recently rejected a request for factoring company approval of a transfer of structured settlement payment rights, where an 18-year-old high school student would have sold future payments with a face value of more than $690,000, in exchange for about $265,000. One notable aspect of the court’s ruling in the case (captioned In the Matter of the Petition of American Farms, LLC For Approval of the Transfer of Structured Settlement Payment Rights In Accordance…

Read More Read More

Are Risks To The Factoring Company Relevant During Structured Settlement Protection Act Proceeding? One Court Says No

Are Risks To The Factoring Company Relevant During Structured Settlement Protection Act Proceeding? One Court Says No

This post describes the situation in In re Prudential Ins. Co. of America (Tyler Davis), No. 2010-1233CV, 29 Misc.3d 1203(A), 2010 WL 3786188 (N.Y. Sup. Ct. Sept. 27, 2010), where the court reviewed a proposed structured settlement factoring transaction and was critical of the inconsistencies among the payee's various proposed transfers.  The court denied the latest transfer approval request, finding that the most recent proposed transfer was not in the payee's best interest, and saying that the discount rate of almost 17% was unconscionable. The judge also noted that the…

Read More Read More