In the US, all tort claims alleged to have occurred on or over navigable waters will fall under the jurisdiction of the federal admiralty courts. However, personal injury plaintiffs must also establish that the actions or omissions that gave rise to the lawsuit have a close association with customary maritime activity. Search and rescue operations on the oceans have been ruled by the courts as having a strong link to traditional maritime ventures for admiralty jurisdiction. Personal injury claims by boaters and sailors under admiralty courts can sue the government for negligence in rescues. Some cases may also involve death, disabilities and wrongful death, but they have long proved to be one of the most tort claims to succeed.
Chris Hakes one of the survivors of a boat accident and sued the Coast Guard for a negligent rescue mission that failed to contact local authorities for better equipment. During the rescue, Hakes sustained injuries on a dinghy boat that capsized. The parties settled a structured settlement arrangement, immediately receiving $50,000. After that, the annuity guarantor was obligated to pay Hakes $60,000 in August 2018, $70,000 on July 19, 2020, and $140,000 on September 2022. However, Hakes felt disillusioned with the arrangement as it purported to fence him in a rigid future income stream. He started to run round the bend for quick cash; he had to tweak the fund into a lump-sum amount.
Sell Structured Settlement
Pre-Contractual Considerations Before Selling Structured Settlement Payments
Hakes first explored the market to get the rates prevailing on the market and aim for the top-dollar bidder. He chose J.G Wentworth as the buyer of his two last annuities in return for an immediate lump sum of $167,000. Wentworth informed him they had to serve the annuity issuer and “obligor” notices regarding the sale. He was also advised to seek a professional opinion to learn more about possible impacts of the transaction.
Court Approval in Michigan Provides An Extra Layer of Protection
Wentworth filed a petition in the state court seeking approval of the sale of structured settlement payment rights from Hakes. The structured settlement annuity buying company usually presents the application to avoid Excise Tax levied by Title 26 of the US Code section 5891 (a). It also adds confidence on sellers like Hakes who feel shielded from the judge’s scrutiny and professional independent advice.
Michigan Has a Revised Version of the Structured Settlement Protection Act
Michigan adopted a revised SSPA 296 of 2006. He benefited from various provisions that obligate the structured settlement annuity buyers to adhere to acquire his payment rights. The Act requires the parties to seek court approval. The court granted a final order upon being satisfied the transfer of structured settlement payments was in his best interest, received independent professional advice, he would suffer financial hardship in the absence of the lump sum and would not render him insolvent.
What is the 25% Interest Cap in Michigan?
Hakes also benefited from a sizable discount margin that is not within the grasp of most annuitants selling in other states. Michigan has passed a provision that limits below 25% annually. It puts a cap on the discount rate in assessing the scaled lump sum of the remaining structured settlement payments.
All Michigan Factoring Transactions Fall Under the Revised Statute
The SSPA also denies the payee of structured settlement payments the right to waive the application. Accordingly, Hakes and Wentworth had to operate within the scope of the law to avoid the transaction being declared invalid at a later date. Any disputes regarding the sale fall under the legislation of the state, a structured settlement funding company cannot impose arbitration or other jurisdictions on sellers such as Hakes. If they disagreed, Michigan courts could intervene.
Renowned Structured Settlement Purchasing Companies
J.G. Wentworth has remained in the forefront as one the industry’s most trusted brand in the secondary market of factoring structured settlement payments, annuities and lottery winnings. The company files all relevant documents in court, complies with all laws and judge-issued orders.
Woodbridge Structured Funding is a reliable company to select as your buyer of annuities due to their streamlined processes and committed customer advocates. Their team of attorneys has mastered court procedures across all 50 states; they can act as your legal representative, give a lucrative price offer, draft and deliver a compliant transfer agreement and expedite your transaction to meet unique needs.
Stone Street Capital can provide a lump-sum monetary award buyout for future income streams without overreaching your funds, renders a simple transfer and release agreement and responds to your specific requirements.…