by Structured Settlement Watchdog (UPDATED August 31, 2022)
Who's Got the Power?
Upon learning of the August 12, 2022 Pottawatomie Oklahoma District Court finding and order in favor of 86 year old retired school teacher Geraldine Yeisley, you couldn't blame her if she cranked up SNAP's " I've Got The Power" on her Harmon Kardon.
The Pottawatomie County findings and decision, broken down below, parallels a similar ruling in Arizona litigation (Superior Court Maricopa County CV 2020-004958), pitting the the Keefer retirees against Genex Capital and appears to significantly narrow Genex Capital claims, while exposing Genex to potential liability to the follow on investors, as I anticipated might happen in a December 28, 2020 post. Genex Capital has requested reconsideration of the June 9, 2022 Maricopa County Arizona under advisement ruling on the matter.
Complex litigation has been ongoing between Genex Capital Corporation, a structured settlement factoring company, investors, and an intermediary pending since 2020* in Maricopa County Arizona and branching out into other states, such as Oklahoma, against Yeisley provides an illustration of what can happen. Genex Capital is litigating against multiple investors who it alleged breached its Receivables Purchase Agreement(RPA) when they sold/reassigned their receivables and did not obtain Genex's consent or go through Genex. For Genex it has been all about the right to assign and for the investors it's all about "The Power" to assign.
* a number of additional investors sued Genex in 2021
What Genex Capital Had Claimed
Earlier this year, Genex Capital claimed that Intervention in the matter of In re Petition for Approval of Transfer of Structured Settlement Payment Rights between Stratcap Investments, Inc. v. Nwannewuihe, Case No. 2012-CH-000229 (Ill. 7th Cir. Ct.) by investor Geraldine Yeisley, triggered default in payment of $551,000 due on May 15, 2021, resulting in Prudential Life Insurance Company’s** withholding payment pending the outcome of the litigation. Genex claimed that this "resulted in two of Genex Investors’ not receiving their respective portion of the Receivable payment.
** believed to be The Prudential Insurance Company of America, the Prudential entity that issues structured settlement annuities that are used as qualfied funding assets in structured settlements.
"Genex’s inability to pay the two other Genex Investors as a result of the wrongful assignment of the Receivable Purchase Agreements ( RPAs) has further damaged Genex’s goodwill and reputation with investors and brokers. And make no mistake, said Roger Proctor, the $551,000.00 payment due on May 15, 2021 was due and payable to Genex and no other person as per a final and longstanding non-appealable court order". [Decl. of Roger Proctor 1/3/2022 at #79-80 p15].
FINDINGS from the August 12, 2022 Oklahoma decision (full document below)
54. For valuable consideraton received, Genex sold, assigned, transferred, and conveyed to Yeisley and Yeisley IRA all of its right, title, and interest to the Yeisley Receivables.
55. In accordance with the First RPA, Genex assigned, transferred, and set over to Yeisley all of its right and interest in a portion of the payments related to the Volpe, Nwannewuihe and Tenowich Receivables when it executed and delivered the respective Assignment of Sale and Assignment Agreements to Yeisley.
56. In accordance with the Second RPA, Genex assigned, transferred, and set over to the Yeisley IRA all of its right and interest in a portion of the payments related to the Volpe and Nwannewuihe Receivables when it executed and delivered the respective Assignment of Sale and Assignment Agreements to Yeisley.
57. Through the Assignments of Sale and Assignment Agreements ("Assignments") and pursuant to the terms of the RPAs, Genex irrevocably assigned all of its rights, claims and causes of action which they had, may have, now and in the future, with respect to the Yeisley Receivables, including the claims now being brought against the Yeisley Defendants.
58. Genex has no right, title, or interest to the Yeisley Receivables.
59. The First RPA contains a restriction on Yeisley's right to assign but not on her power to Assign the Yeisley Receivables
60. The Second RPA does not contain a restriction on the Yeisley IRA's right or power to assign the Yeisley Receivables.
61. A termination of the RPAs does not result in a forfeiture of the Yeisley Defendant's payment rights associated with the Yeisley Receivables.
62. Genex's purported termination of the RPAs has no effect on the Yeisley Defendants' payment rights under the Assignments.
63. Genex had no right to withhold, sell, or reassign the Yeisley Receivables.
64. Genex purported reassignments of the Yeisley Receivables have no effect on the Yeisley Defendants' payment rights associated with the Yeisley Receivables and all payments/payment rights thereunder are owned by the Yeisley Defendants.
65. The Yeisley Defendants have standing to bring their claims against Genex for declaratory judgment and breach of contract.
1. Defendants' Motion for Partial Summary Judgment as to their Count One is GRANTED.
2. Plaintiff's Motion ofr Summary Judgment Seeking Dismissal of Yeisley's Counterclaim is DENIED.
3. Plaintiff's Motion foir Partial Summary Judgment for Genex's First Cause of Action is DENIED.
IN THE DISTRICT COURT OF POTTAWATOMIE COUNTY STATE OF OKLAHOMA Cause CJ-2021-115 (Judge Canavan)
GENEX CAPITAL CORPORATION a Delaware corporation, Plaintiff/Defendant on Counterclaim/Counterclaimant vs .
GERALDINE YEISLEY, individually; PROVIDENT TRUST GROUP LLC FBO R. GERALNDINE YEISLEY IRA
(Account 120300245); PROVIDENT TRUST GROUP LLC FBO R. GERALDINE YEISLEY ROTH IRA (Account 131200192); and GERALDINE YEISLEY Trustee of the GERALDINE YEISLEY REVOCABLE LIVING TRUST Defendant/Counterclaimant/ Defendant on Counterclaim, AND JIM MILLER