Yet another attempt to cash out a structured settlement entered into with the United States government has failed. In the Consent Judgment by the United States District Court for the Eastern District of Pennsylvania filed December 17, 2010, for the Interpleader Action of The American International Life Assurance Company of New York v The United States of America, J.G. Wentworth S.S.C. et al. 2:07-cv-05378 PBT (C.A. 07-5378) , the Court found that a State Court Order approving a purchase agreement to acquire payments from a United States government owned annuity was avoid an unforeseeable void and unenforceable against the United States of America because the court lacked subject matter jurisdiction and the United States had not waived its sovereign immunity. The state court lacked the authority to change the payee under the annuity, an act that was exclusively in the discretion of the United States.
This case is the last in a long line of disputed cases around the country involving United States owned annuities, all of which have gone against the secondary market.
The underlying structured settlement was the product of a September 5, 1986 stipulation of settlement with the United States under the Federal Tort Claims Act (FTCA). For more details on the case please click on the above link
A selection of previous Structured Settlements 4Real reports on "The Structured Settlement Secondary Market v The United States"
- Factoring Companies Keep Trying But Can't Breach Uncle Sam's Structured Settlements December 2, 2009
- J.G. Wentworth in Big Ole Bucket of 'Kentucky Fried Butt Kickin' From Uncle Sam June 17, 2009
- The T'Snot Heard Round the World March 20, 2009
United States Owned Structured Settlements and Attempted Structured Settlement Transfers, 5th Circuit Doesn't Like What It Sees in "Peachtree Dish". Affirms Lower Court January 27, 2009