Petitioners have brought the instant proceeding for an order pursuant to the Structured Settlement Protection Act (“SSPA”) codified under General Obligation Law, Title 17, approving the transfer to Stratcap Investments, Inc. of periodic payments otherwise payable to EV.
Pursuant to this Court’s prior short form Order dated February 18, 2009, a hearing was scheduled wherein the parties were to provide the Court with the following: Petitioner was to provide the fees and expenses, as well as the discount rate of the proposed transfer, copies of the underlying matter which is the predicate for the structure, legible copies of the structure itself and the current value of same. Petitioner was also directed to serve a copy of the Order upon any and all interested parties involved in the initial action (i.e. obligor, issuer). Mr. EV was directed to provide the Court with documentary proof, in admissible form, of his financial circumstances.
LAC and LLAC of Boston, interested parties to this action, did not submit opposition to the Petition and did not appear for this noticed hearing.
As a backdrop to this proceeding, the subject structured settlement arose as a result of a personal injury action under Index No. 25082/97. Apart from a summons and complaint wherein it appears that Mr. EV sustained injuries on November 10, 1996, after his motorcycle hit a pothole on the Sheridan Expressway in the Bronx, the Court has scant factual background with regard to the actual injuries sustained by Mr. EV. This matter was ultimately settled pursuant to a settlement agreement dated October 14, 2005, in the amount of $795,674.00. It appears from Mr. EV’s 2005 income tax returns that he took an itemized deduction in the amount of $220,935.00 which represented medical bills paid pursuant to this lawsuit. As such, the Court is left with the impression that the respondent’s injuries were quite serious, presumably resulting in extensive medical care and treatment.
Further, as per the settlement agreement, an annuity was funded in the amount of $204,206.00, with Mutual Insurance Company on September 27, 2005; the liability to make periodic payments thereafter assigned on October 24, 2005, to petitioner LLAC of Boston. The periodic payments were to be paid as follows: “$2,000.00 per month, guaranteed for 120 payments, beginning on 12/03/05 with the last guaranteed payment on 11/03/15.” However, there is no information relative to the prevailing interest rate as of the initial funding, nor the ultimate guaranteed total amount of this structure in 2015.
Mr. EV proposes to sell and transfer his structure as follows: eighty seven (87) monthly payments in the amount of $2,000.00 beginning with the payment due on September 3, 2008 through and including the last injury payment due on November 3, 2015.
To Be Cont…
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