The Federal Tort Claims Act or FTCA Act absolves the US government from liability on tort suits but provides exceptions on certain intentional torts. Intentional torts such as battery and assault committed by investigative or law enforcers leading to personal injury create actionable torts. The provision extends to acts or omissions constituting intentional torts committed in the course of employment such as searches, arrests, or confiscation of evidence. Congress enacted the proviso to waive sovereign immunity where the exercise of legal authority by officers, whether in investigative or official capacity. The FTCA donates exclusive jurisdiction to federal district courts over a lawsuit against the United States where property damage or personal injury springs from the negligent act or omission by government employees within the ambit of employment or office.
James Miller filed a tort claim against the federal government predicated on the FTCA alleging negligence, battery, assault and malicious prosecution. Miller had been threatened by FBI agents and struck with a metallic object before being incarcerated. In his complaint, Miller asserted physical and psychiatric injury from the incident and sought compensation. In dismissing the government’s contention that the intentional tort was not actionable, the District Court entered summary judgment for Miller. His compensatory damages fell under a structured settlement with duty-free benefits. Structured settlements now trickle down compensation money to more than all tort claimants in the US. In the structured settlement configuration, Miller would get a future income stream with cyclic payments. Although Miller envisioned a boon like a lottery win, the lack of lump sum payment in a locked fiscal scheme made him explore other options when he needed immediate cash. But exactly, how did he sell his structured settlement in California?
Sell Structured Settlement
Selecting A Structured Settlement Purchasing Company
Miller got down to the task and explored a couple of structured settlement annuity companies. J.G. Wentworth stood out from the crowd as they more than 3,000 circuit court approvals in California. The company agreed to handle the legal process and only deduct fees once the transfer agreement got court approval.
Californian Structured Settlement Transfer Act (SSTA)
The state’s SSTA has three salient requirements that the seller and buyer of a structured settlement must comply with:
(1) Disclosures to the seller
(2) Notice to the attorney general and interested parties
(3) Court sanction
Miller waited for the court hearing eagerly and appeared personally on the court date. The judge asked him about the interest rates, fees and lump sum payable in the transaction which he seemed to grasp firmly. The insurer also contributed to the proceedings together with a representative of the factoring company. Eventually, the judge signed off the transaction and Miller would get his money after a few days.
What is the California Usury Law and how does it impact Miller’s deal?
Usury Law provides the interest rate levied must not exceed 10% for consumer loans where the borrower bears the risk. The court conducts an independent review to determine whether the transfer flouts the provision on Usury espoused in California constitution against sporadic oscillation of costs by money lenders. However, the transfer of structured settlement payment rights in line with the SSPA does not amount to a loan but a sale. Thus, the proviso does not apply in factoring transactions.
Miller’s Annuity Contract Had An Anti-Assignment Provision, Why Did the Court Ignore it?
An anti-assignment rider prohibits parties to a contract from re-assigning their rights, obligations or duties. The California Uniform Commercial Code envisions public policy principles against anti-assignment terms and the SSPA as they incentivize credit transactions that fuel the economy. The public policy allowed the court to approve the sale as the interested parties did not raise any objections.
Top-Class Structured Settlement Annuity Companies
J.G. Wentworth provides you with a company representative to appraise your future cash flows, forward it to court for review and approval by a judge and ensure you get an upfront lump sum payment in return for a sprinkling or the whole of the stream.
Peachtree Financial Solutions is nationally recognized in the US as a fast-booming buyer of annuities to provide immediate cash down, capture the deal in a fair contractual agreement with non-usurious interest rates, alluring price offer, and seamless processing.
Olive Branch Funding outflanks its rivals in the factoring industry with reasonable discount rates, painless and legally compliant transactions, and promotion of consumer welfare. The company has a record-setting court approval rate in county courts all over the country.