by Structured Settlement Watchdog
The Town of Lovell Wyoming is out of the QSF business
On February 25, 2025, the Lovell town council voted to accept a settlement agreement with Eastern Point Trust Company, which threatened legal action over the Lovell arrangement with Flatirons Bank and Justice Escrow to provide a vehicle for qualified settlement funds. When the arrangement was established in 2023, it was meant to bring in revenue in filing fees to the town of Lovell "as the government agency of record". However, as I observed in January, at 80 deals at $25 it appears to have been a very insignificant moneymaker. Even with a funded QSF which would have brought nominal additional fees, the Town of Lovells would have had to consider the dire cost benefit analysis.
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What Is A Qualified Settlement Fund §468B-1
QSF is an abbreviation for Qualified Settlement Fund.
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What is Justice Escrow?
According to its December 18, 2024 trademark application to the United States Patent and Trademark Office, by FBHC Software LLC, Justice Escrow is involved in "Claims administration in the field of Qualified Settlement Funds for use by financial institutions, attorneys, and their clients and related to the management of settlement funds received from legal matters; Fiduciary tax payment reporting and processing services; Management and accounting for the distribution of Qualified Settlement Funds for use by financial institutions, attorneys and their clients and related to settlement funds received from legal matters; Electronic processing of information, data, and documentation for the management and administration of settlement funds received from legal matters; Maintaining, administering, managing, and tracking escrow accounts for financial institutions serving as administrators or escrow agents, attorneys and their clients who have received settlements in legal matters; Structured settlement services, namely, facilitating the funding and assignment of structured settlements to insurance companies for attorney fee disbursements; Structured settlement services, namely, facilitating the funding and assignment of structured settlements to insurance companies for disbursements of settlement funds to clients; Identity Management services to collect sensitive information directly from the owner of that information, then store and share sensitive information when required and approved". The USPTO entry claims a first use anywhere date of August 1, 2024. See JUSTICE ESCROW Trademark Application of FBHC Software LLC - Serial Number 98910324 :: Justia Trademarks
Didn't Lovell Already Vote to Terminate the QSF Agreement with Flatirons Bank?
Wyoming Town Nixes QSF Agreement with Flatirons Bank After Intellectual Property Infringement Claim - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews January 31, 2025
Summarizing from the Lovell Chronicle
- The Lovell Town Council initially voted on January 24 to terminate the QSF agreement with Flatirons Bank immediately.
- The Lovell Town Council met again on January 29 to discuss a proposed compromise settlement agreement with Eastern Point Trust Company but tabled the agenda item
- The Lovell Town Council met again on January 30. During the January 30 meeting, which was attended by representatives of Flatirons Bank, the council voted to reject the compromise settlement agreement and stick to the 90-day termination provisions in the contract with Flatirons Bank.
- The council addressed the QSF issue again during the regular council meeting on February 11, which was attended by Flatirons Bank president Kent Jones, who stated that Flatirons valued the relationship the bank had with the Town of Lovell and emphasized the bank’s support for the indemnification provisions within the QSF agreement. Lovell Mayor Tom Newman told Jones at the February 11 meeting that the town would be looking into outside counsel for a second opinion in the area of tax law. [ “We don’t touch the funds,” Mayor Tom Newman emphasized in August 2023, noting that the town would, in essence, act as an auditor to make sure funds come in and go out through the QSF. The filing fees could be substantial over time, he said. Hmm}
- The council then called a special meeting on Wednesday, Feb. 19, to sign an engagement letter that would allow the council to hire outside legal counsel to advise the town. Town Attorney Alexa Rolin of Copenhaver, Kitchen and Kolpitcke in Powell WY, worked closely with and advised the town throughout the weeks of the QSF issues.
- On February 25, 2025 the Lovell council held a special meeting and the council immediately went into a closed executive session to discuss the matters surrounding potential litigation and "emerged three hours later looking long-faced and exhausted", then voted to enter into the Eastern Point settlement agreement 4-1.
- In a follow-up interview on March 3, Rolin explained that the vote on the settlement agreement the previous week had the effect of an immediate termination of the QSF relationship with Flatirons Bank.
- The best interest of the Town of Lovell and its citizens was paramount.
What Were the "QSF Issues" referred to by Lovell Chronicle's David Peck?
What lessons will be learned by others? What should be learned?
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