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At Synergy, we spend a lot of time in mediations helping attorneys and their seriously injured clients to plan for their post settlement future. We try to create holistic settlement plans that meet our client’s needs while taking the least possible amount of risk. The majority of financial products in the settlement industry are fixed income or fixed interest products.
On May 13, 2013 the US Securities and Exchange Commission, Office of Investor Education and Advocacy, issued an Investor Bulletin entitled, “Pension or Settlement Income Streams: What you need to know before buying or selling them.” It is the opinion of the authors that this bulletin is misleading and in some cases inaccurate concerning the sale of structured settlement payment streams and factored structured settlements as an investment vehicle.
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Reprinted with Permission from Roger Baron
The 5th Circuit handed down ACS Recovery Services, Inc. v. Griffin today, April 2, 2012. Mr. Griffin was seriously injured in an auto accident. The ERISA plan paid medical bills of $50,076.19. The plaintiff’s attorney secured a settlement of $294,439.82 and arranged for a structured settlement annuity “in an effort to avoid any equitable lien assertion” by the ERISA Plan. Mrs. Griffin received $40,000 for loss of consortium. The ERISA plan sued Mr. Griffin and his wife, as well as the trustee and the trust designated to receive the annuity payments. The trial court “dismissed the claims against all of the defendants.” This decision by the 5th Circuit affirms that dismissal.
MSPRC has provided instructions on how to elect the fixed percentage option for conditional payment resolution.
A Volusia county judge’s refusal to approve a structured settlement for a minor child was appealed in Hancock. The Fifth District Court of appeal reversed a decision by a C. McFerrin Smith which held that the court lacked legal authority to approve a structured settlement that paid out after age of majority.