by Structured Settlement Watchdog
The United States Department of Justice has proven to be a superior bulwark to structured settlement factoring
The DOJ keeps racking up wins as it has for more than a decade. So when a structured settlement factoring company solicits a customer for assured annuity sale and the annuity is owned by the United States, as most structured settlements concluded under the Federal Tort Claims Act (FTCA) are, you have to wonder why the structured settlement cash now company wasted the client's time. The reason for denial is the same reasons that Uncle Sam has been rolling up the score, securing wins in Texas, Kentucky and in the 5th and 6th Federal Circuits.
The latest attempt by a Delaware company called Standard Management Services, Inc. was swiftly denied by Sarasota Florida Circuit Judge Kimberly C. Bonner. [See In Re: Standard Management Services, inc.,a Delaware Corporation, Petitioner v Peter MacLay and New York Life Insurance Company Respondents 12th Circuit FL Case No.:58-2017 CA 000050 SC}
Judge Bonner concluded (1) that the subject annuity prohibited assignment and (2) that the Sarasota Circuit lacked jurisdiction to grant the petition to transfer structured settlement payment rights. Download MacLay Order
An added wrinkle set forth in New York Life's response that led to the denial was that the United States Bankruptcy Court for the Middle District of Florida, Fort Myers Division issued an order May 22, 2000 stating " there shall be no further assignments or transfers unless approved by the United States of America".
Mr. Maclay attempted to transfer his payments to Genex Capital Corporation in 2008 and was rebuked. Maclay then sued the United States in the Federal Court of Claims seeking to get an order compelling the transfer and when faced with a substantially similar 2009 case (Annuity Transfers v USA 86 Fed Cl. 173) which was not favorable, Maclay voluntarily dismissed the suit against the US. June 3, 2016, the United States Bankruptcy Court Middle District of Florida at Tampa denied Maclay's motion to compel the United States to accept an assignment and sale of structured settlement payments [Case 8:14-bk-8902-CED].