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Tag: “Texas Structured Settlement Protection Act” “Texas SSPA”

What Steps Should Factoring Companies Take to Ensure Non-Contravention Of Court Orders?

What Steps Should Factoring Companies Take to Ensure Non-Contravention Of Court Orders?

Forty-nine states have structured settlement protection acts – laws that say that if a person who is entitled to receive future structured settlement payments wants to sell the right to those payments to a factoring company in exchange for a more immediate (but lower) payment, then the transaction is not legally effective unless a court approves the deal. These SSPAs generally provide that a court can approve a transaction only where the court can find that such a transaction is…

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Texas Amends Structured Settlement Protection Act To Allow Redaction of Payee Names, Other Information

Texas Amends Structured Settlement Protection Act To Allow Redaction of Payee Names, Other Information

The Texas Structured Settlement Protection Act has been amended, and the new provisions are unique about the 49 state SSPAs. Each SSPA provides that an individual payee – the person entitled to receive future payments pursuant to the terms of a structured settlement – can only sell the future payment rights to a purchasing company (usually called a factoring company) when and if a judge reviews the transaction and approves the sale based on a determination that the transfer is in…

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Factoring Companies Cannot Shift Costs Under Structured Settlement Protection Act, Says Appeals Court

Factoring Companies Cannot Shift Costs Under Structured Settlement Protection Act, Says Appeals Court

As described here, the Texas Court of Appeals, Fourteenth District, issued a recent opinion that appears at odds with other authorities in structured settlement protection act (SSPA) matters. While much of the opinion dealt with the issues of best interest and judicial authority relating to a servicing arrangement, in another part of its opinion, Metro. Life Ins. Co. v. Structured Asset Funding, No. 14-15-00584-CV, 2016 Tex. App. LEXIS 9359 (Tex. Ct. App. Aug. 25, 2016), the Texas appellate panel reached a…

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Texas Courts of Appeals Opinion at Odds with Other Judges on What ‘Protection’ Means Under A Structured Settlement Protection Act

Texas Courts of Appeals Opinion at Odds with Other Judges on What ‘Protection’ Means Under A Structured Settlement Protection Act

The various districts of the Texas Court of Appeals have considered a number of cases relating to the Texas Structured Settlement Protection Act.  In a recent opinion, a panel of the Texas Court of Appeals for the Fourteenth District came out with some views that are at odds with an opinion from last year from a panel from the Seventh District.  The more recent opinion also stands out as being at odds in other ways with other opinions addressing structured…

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Appeals Court in Texas – In Line with Appellate Rulings in Other States – Upholds Anti-Assignment Provision to Preclude Secondary Market Transaction

Appeals Court in Texas – In Line with Appellate Rulings in Other States – Upholds Anti-Assignment Provision to Preclude Secondary Market Transaction

An anti-assignment provision in a structured settlement agreement is valid and enforceable and precludes a proposed transfer of structured settlement payment rights, in a case where the annuity issuer and structured settlement obligor have asserted their rights under the provision. That was the holding in an opinion issued last week by a panel of the Texas Court of Appeals. The holding is consistent with appellate court rulings in state structured settlement protection act proceedings a number of other states, including California,…

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Texas Appeals Courts Says Transfer Should Not Have Been Approved, Concludes There Was Insufficient Evidence for ‘Best Interest’ Finding

Texas Appeals Courts Says Transfer Should Not Have Been Approved, Concludes There Was Insufficient Evidence for ‘Best Interest’ Finding

An appeals courts in Texas recently issued an opinion rejecting arguments set forth by structured settlement factoring companies, and reversing a trial court’s decision to approve a transfer. In re Rains, No. 07-14-00132-CV, 2015 Tex. App. LEXIS 8219, 2015 WL 4647779 (Tex. Ct. App. Aug. 5, 2015), is the opinion issued by the Texas Court of Appeals that reversed a trial court’s decision to approve a transfer of structured settlement payment rights under the Texas Structured Settlement Protection Act. The…

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Based on Facts in Two Cases, Appeals Court Says Later Orders Did Not Contravene Earlier Decrees That Included Servicing Arrangements

Based on Facts in Two Cases, Appeals Court Says Later Orders Did Not Contravene Earlier Decrees That Included Servicing Arrangements

Two Texas payees each sold structured settlement payment rights in a series of transactions to two factoring companies – creating situations that led to disputes between the factoring companies and, recently, to parallel opinions, in cases arising from Texas Structured Settlement Protection Act (SSPA) proceedings, from the Texas Court of Appeals. In those opinions, J.G. Wentworth Originations, LLC v. Freelon, No. 01-13-00059-CV (Tex. Ct. App. Aug. 12, 2014), and J.G. Wentworth Originations, LLC v. Perez, No. 01-13-000264-CV (Tex. Ct. App….

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No Interest In Annuity, So Nothing To Assign

No Interest In Annuity, So Nothing To Assign

Under structured settlement protection acts, a transfer of an individual payee’s right to receive structured settlement payments becomes legally effective only when and if a court approves the transfer. Those forty-eight states with structured settlement protection acts recognize, in those statutes, that the property being transferred by such court approval is the right to receive payments under the structured settlement agreement – and not under the annuity that is the asset that typically funds the payments. That recognition items from…

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