Settlement Funding, LLC v. Brenston

Illinois Appellate Court
Civil Court
Citation
Case Number: 
2013 IL App (4th) 120869
Decision Date: 
August 26, 2013
District: 
4th Dist
Division/County: 
Sangamon Co.
Justice: 
CATES
Holding: 
Reversed and remanded with directions.
Respondent settled medical negligence case for lump-sum payment of $864,228 and structured periodic payments. "Settlement Funding" company filed petition seeking approval of transfer of settlement payment rights from Respondent, based on "Absolute Assignment and UCC Article 9 Security Agreement", with discounted present cash value of $264,088. Structured Settlement Protection Act did not apply because of antiassignment clause in settlement agreement and annuity contract, and thus court was without authority to approve Settlement Funding's petition under the Act. Settlement Funding company's fraudulent pleadings were intended to deceived court into finding that it had authority to consider and rule on petitions under the Act, and thereby frustrated purposes of bargained-for antiassignment provisions in annuity.(STEWART and WEXSTTEN, concurring.)