by Structured Settlement Watchdog
A pre-trial hearing was held on May 1, 2023 in the Terrence Taylor case.
Status of Interpleader
In August 2022, I reported that Judge Charles J. Maxfield granted the New York Life interpleader motion that had been pending for many years. What this meant is that instead of New York Life Insurance Company making structured settlement payments to the structured settlement factoring companies; their investors and/or assignees, the payments in dispute were to be paid into the Court until the lawsuit is adjudicated. At that point the payments could go to the current payees, to Taylor, or some combination. In the May 1, 2023 hearing, Judge Maxfield ruled on the interpleader, the result of which is that the payments related to structured settlement transfer petitions of Jay Gee LLC and iSettlements LLC were removed from the interpleader and those parties and claims were non-suited. § 8.01-380. Dismissal of action by nonsuit; fees and costs (virginia.gov)
The payments however, are not due to start for a number of years into the future. I understand that these parties have reached a confidential settlement.
Interpleader Motion is GRANTED in Terrence Taylor Case in Portsmouth, Trial Set for June 2023 - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and Commentary (typepad.com) August 25, 2022
The above settlement is not the first associated with the series of structured settlement factoring transactions between factoring companies and Taylor in an ungodly short period of time. The original action captioned in the April 20, 2015 amended Federal Complaint STRUCTURED ASSET FUNDING, LLC d/b/a 123 LUMP SUM a/k/a 123 LUMP SUM, LLC; BLAZINGSTAR FUNDING, LLC; JAY GEE, LLC; BEXHILL, LLC; iSETTLEMENTS LLC d/b/a 123 LUMPSUM; HPF CAPITAL d/b/a HIGHPOINT FUNDING and RHETT WADSWORTH. Bexhill, LLC, which was associated with now defunct Boca Raton structured settlement factoring company Client First Funding, settled early on in litigation filed in Federal Court in Alexandria Virginia, which was voluntarily withdrawn in 2015 before the state filing in Portsmouth
Judge Maxfield Rules in Favor of Motion to Bifurcate Trial on Issue of Jurisdiction
With respect to the remaining parties, Taylor's attorneys sought to have the upcoming trial bifurcated to address the issue of jurisdiction. In all of the Taylor structured settlement transfer petitions by Structured Asset Funidng and related companies were submitted in Virginia, specifically the Portsmouth Circuit. But as Terrence Taylor's camp has already pleaded and contended, Terrence Taylor was a resident of West Virginia.
1.Systematic raiding of structured settlement funds through acts of fraud, misrepresentation and negligence that has left a seriously injured amputee burn victim without any means of supporting himself or his dependent child.
2. Statutory violations of the Virginia Structured Settlement Protection Act, Title 59.1,
Chapter 41 (“Virginia Structured Settlement Protection Act”),
3. Statutory violations of Transfers of the Right to Receive
Future Payments, West Virginia Code Statute R. Section 46A-6H (“West Virginia Structured
Settlement Protection Act”),
4. Violations of the West Virginia Consumer Credit and Protection Act, W. Va. Code §§ 46A-6-104 and 102(7)(E) (the “West Virginia Consumer Protection Act”);
An “applicable State statute” is defined as a statute that provides for entry of an order, judgment or decree described in clause (A) above and has been enacted by (I) the state in which the payee of the structured settlement is domiciled, or (II) if there is no such statute in the state in which the payee is domiciled, then the State in which a party to the structured settlement (including an assignee under a qualified assignment under section 130) or the person issuing the funding asset for the structured settlement is domiciled or has its principal place of business. IRC section 5891(b)(3) Excise Tax on Structured Settlement Factoring Audit Technique Guide (March 2019 revision)
Was Structured Asset Funding or any its affilates involved in Terrence Taylor Transfer Petitions Registered in West Virginia when Terrence Taylor was Solicited in West Virginia?
§46A-6H-8. Registration with the secretary of state (West Virginia Law)
(a) A transferee or other person in the business of soliciting or purchasing future payments shall file a registration statement with the secretary of state before advertising or arranging transfers of consumer’s future payment rights in this state.
The above linked August 25, 2022 post provides more detail.
The Terrence Taylor Case
Systematic raiding of structured settlement funds through acts of fraud, misrepresentation and negligence that has left a seriously injured amputee burn victim without any means of supporting himself or his dependent child. The shockingly short time frame that it took for judges in Portsmouth to approve 10 transactions in 2 years, multiple millions of dollars of structured settlement factoring transactions for pennies on the dollar as being in Terrence Taylor's best interest,brought national attention to the inadequacies of the first generation of structured settlement protection laws in Virginia and elsewhere. The Virginia structured settlment protection act wasamended shortly after national attention was brought to the case. Retired Portsmouth Judge Dean Sword approved 8 of the transactions. The system relies on judges as the last line of defense in what has been described as flawed system.
The flawed system that allows companies to make millions off the injured - The Washington Post December 28, 2015
Opinion | Virginia’s weak laws allow structured settlements for pennies on the dollar - The Washington Post
Terrence Taylor Structured Settlement | Lawsuit v 123 Lump Sum | The Back Story - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and Commentary (typepad.com)
Comments and Trackback Policy