American courts normally allow litigants to scoop damages for a breach of contract, civil duty or trust that causes the innocent party to suffer estimable loss flowing naturally from the wrongdoing. But in torts, personal injury claimants pursue compensation for pain and suffering, loss of consortium or wrongful death. Pain and suffering not only covers actual bodily harm but also encompasses psychiatric harm and the litany of attendant symptoms such as emotional stress, anxiety or fear. Unlike a contractual breach, an award for pain and suffering is not easily calculable or quantifiable. Juries and judges have to impart from life experiences. Nevertheless, the net value of compensation recoverable is hinged on the severity and permanent health implications.     

Veronica Tate was awarded general damages by a jury in a personal injury case for past and future psychiatric pain and suffering and loss of consortium after the death of her husband in a coal mine explosion. The compensatory award consisted of thousands of dollars channeled through a structured settlement income stream payable in pre-determined cyclic periods. The scheme sounded a death knell to Tate’s overtures who thought a lottery windfall had just perched on her shoulder. She started to cash in the structured settlement but later on sought to skim off a segment of her structured settlements for liquid money. Luckily, the market for structured settlements in the US has rapidly boomed and websites like Settle4Cash allows structured settlement sellers to receive tempting bids for future cash flows.    

Sell Structured Settlement in Minnesota

Retaining Your Attorney and Rule Against ”Champerty”

To protect payees, Minnesota courts must approve the proposed transfer of her right to her future income stream. In Minnesota, Tate had to hire an attorney to represent her in the transaction and legal costs do not depend on the contingent that the transfer gets approved by the court. The attorney must be compensated whether or not the transaction succeeds in court. The attorney provided her a professional opinion on the legal, tax and fiscal ramifications for several hours.   

Documents She Sent to Her Attorney

A copy of the underlying court order creating the structured settlement contract, and the periodical payments    

Copies of disclosure statements and documents delivered to the payee by the insurance company or obligor just before the underlying court order was issued

  • The names and ages of all dependents of the payee
  • The manner of occupation and current remuneration levels of the payee and spouse
  • Details on how dependents or spouse financial welfare will be met once the proposed transfer gets court approval
  • An explanation of how  she would spend the structured settlement payments after the court approves the transaction   

How Does A Disclosure Protect Her Interests in the Transaction?

Ten days before she signed the contract, Tate received a written disclosure with critical details. They included the amounts and scheduled dates of periodic payments and their total value, discounted current value of the income stream assigned, discount rate and itemized listing of processing fees. The disclosure statement highlighted the net lump sum amount that Tate would receive. Most structured settlement purchasing companies do not charge attorney fees on payees but pay from their own pockets.   

Court Approval and Considerations

Tate appeared in court for examination by the judge as the law in Minnesota requires the court to make findings the transaction serves the best interests of the payee. Tate’s structured settlement future income stream was for the loss of consortium, and her attorney argued she did not need money for medical expenses or lost employment like severely injured tort claimants. The discount rate employed in the transaction did not overreach her lump sum payment offered. A final court order was issued by the court allowing her to transfer a portion of her periodic payments.

Well-Known Structured Settlement Purchasing Companies

J.G. Wentworth can act as your legal representative throughout the factoring transaction to safeguard your payment rights, ensure compliance with state and federal laws by filing a petition in court and ventilate the matter before the judge to meet the “best interests” test.

Peachtree Financial Solutions will give you a profitable price offer for your structured settlement payments due to their substantial experience as a buyer of structured settlements, annuities and lottery winnings.

Olive Branch Funding has a proven track record as a reliable structured settlement buying company with low transactional costs, streamlined transfer process and a whacking lump sum for all future cash flows.

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