Denial of Sturcutred Settlement Transfers by Courts Due To Objections of Annuity Issuer
by Marry A. S.
While structured settlement transfers are indeed easily approved by judges in most cases, especially with participation and appearance of the payee before the judge and with a reasonable discount rate, it does happen here and there that a judge refuses to approve a sale of structured settlement future payments.
And one reason to this is because of Anti Assignment provisions included in the original contract of the structured settlement, especially when the original obligor and issuer objects to the transfer.
Cases like this did happen, and court decisions in such instances depend on many things, including the federal and state law, the specific circumstances and the judges own reasoning.
Once such instance was when a structured settlement holder wanted to transfer to e settlement and get a lump sum. In 2005, the obligor and annuity issuer filed a petition against it and the trial court denied the transfer.
It is definitely worth paying attention, both at the time of signing the original structured settlement, as well as when considering a structured settlement transfer, to the exact language and details of the contract that can range from rather simple to quite embellished, complicated and hard to understand.
Does the agreement negate an assignment of the contract, or of the future payments? In the latter, the odds for a enforceability of the anti assignment restrictions and court denial of the transfer are higher.
In the a.m. case, the Appeal Court of the Florida State upheld the trial court ruling denying the structured settlement transfer that the appeal court found "valid and enforceable" due to an anti-assignment provision, contravention of the the structured settlement by the transfer and objection of an interested party to the assignment of future payments.
There were also a number of other cases of structured settlements transfers not gaining court approval, but each and every case is really unique and it depends on the agreements, laws and circumstances.