Court Of Appeals: Public Policy Favors Court Approved Transfers

The California Court of Appeals in Fresno issued a surprising opinion this week on a group of 11 JG Wentworth factoring cases. In 321 Henderson Receivables Origination v. Sioteco, the court reversed the much publicized trial court decisions that had sent shock waves through the factoring and structured settlement worlds. Among the issues addressed by the court was the effect of contractual anti-assignment provisions on structured settlement factoring. In countermanding the trial court, which had decided that such anti-assignment clauses would render factoring transfers void even if not raised by the insurers, the unanimous panel of appellate judges found that such provision could be waived, and in fact that California public policy is against such provisions and is in fact in favor of court approved factoring.

The Sioteco decision is here. 

For more on the most significant case in structured settlement factoring in recent memory, click below to watch Scott Drake of the Legal Broadcast Network interview Matt Bracy, General Counsel of Settlement Capital Corporation.