by John Darer ® CLU ChFC MSSC CeFT RSP CLTC
Best Interest Test FAIL
Using the with Reasonable Certainty Standard
In the Matter of Medina New York Supreme Court Bronx County 260363/08 decided December 12, 2008 Judge Alexander W. Hunter, Jr. has denied a structured settlement factoring transaction because he could not “state with reasonable certainty whether or not the transaction is in the best interest of the payee”.
The best interest standard that must be applied when there is a proposed cash lump sum for structured settlement, requires the Bronx judge to take into account the welfare and support of her dependents.
Medina wanted to sell the rights to a $55,000 lump sum payment due June 5, 2012 to Structured Asset Funding, LLC, a Hallandale Florida based company that at the time of original publication of this post, used Ferraris and boats as a reason to sell your structured settlement for $31,500. The purpose of the proposed deal was to enable a move and to buy furniture.
In his decision denying the petition Judge Hunter stated that “Ms. Medina does not indicate whether or not she is employed or otherwise receives a monthly income in order to enable her to pay her monthly rent, utilities and other household expenses. Moreover, she does not indicate how long she intends to live off of the $31,500 she will be receiving from said transfer. She also recently received an annual payment of $16,900 on June 5, 2008 that could have been applied toward relocating to a place of her own”.
A tip of the hat to Fresh Meadows New York personal injury attorney Gary E. Rosenberg of Law Offices of Gary E. Rosenberg P.C for a nice write up on Matter of Medina
All About Structured Settlements: Structured Settlements Beware the Vultures August 18, 2011
Updated June 15, 2012
Related Reading
New York Judges Getting It Done with Structured Settlement Protection! July 4, 2007
All Hail Judge Alexander “Bites Yer Legs” Hunter! May 25, 2007
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