In the US, seamen who have sustained personal injury have three avenues of compensation, viz. the doctrine of maintenance and cure, the principle of unseaworthiness and the federal Jones Act. Under the doctrine of maintenance and cure, the shipowner incurs liability to pay his tort victim’s medical treatment and basic needs until the voyage ends, even where the seaman is not aboard. It resembles worker’s compensation. The principle of unseaworthiness attributes liability to the shipowner if the seaman’s injury results from the ship’s defects or flaws. Negligence of the shipowner under the Jones Act allows the plaintiff or successors in title to sue in a personal injury lawsuit for compensation. Maritime torts instituted by sailors or dependents must have occurred on the high seas and waters sandwiching the ebb and flow of the waters.
Patrick Clark worked as a stevedore when a crane knocked him and hurled him onto the deck and sustained severe injuries leaving him maimed on a wheelchair for life. The Admiralty Court awarded him damages for physical injury with an upfront lump sum of $40,000, $3000 monthly installments and more money as annuities payable at a later date. However, the lump sum award was eaten up by medical expenses and basic needs as his children depend on him. One day, Clark decided to trade a portion of his payment rights for a whacking amount of money. The process was not like cashing out his lottery winnings as he even had to go to court.
Sell Structured Settlement
New Hampshire Has No Structured Settlement Protection Act?
Clark was domiciled in New Hampshire when he ventured out to sell his periodic structured settlement payments. New Hampshire has not passed a different legislation and followed the model SSPA. The standard statute requires the transaction to be approved by a local court. The structured settlement buyer sent him disclosures and filed notices served to interested parties as well as meeting other requirements. A court of competent scrutinized the transaction to ensure the discount rate and lump sum retrievable was fair, just and reasonable.
What is the meaning of in the “best interest” of the payee?
New Hampshire courts assess the financial status and blueprint on how you will spend the lump sum amount recoverable. While in court, Clark ventilated his petition with convincing grounds as he was not only handicapped, he needed more funds to pay for the new prescription and undergo therapy. His family had also expanded sending daily expenses to the stratosphere, and his daughters were in need of more money after they joined college. The court found it was in his best interest as his economic hardship was apparent and the entrepreneurship plan to invest the lump sum viable. The transaction qualified for exemption from the 40% IRC Excise tax.
What is a fair, just and reasonable interest rate in selling a structured settlement?
New Hampshire courts require the buyer of annuities to prove the discount rate is reasonable, conscionable and rational. The court understood Clark had pressing needs and it was understandable to get fast cash at a discounted price. In evaluating whether the discount rate charged meets the test of fairness and reasonableness, a district court will examine evidence of rates prevailing on the market. Clark had an opportunity to shop around for the highest bidder for his future cash flows; this too served to show the agreement had mutually beneficial terms.
What Was the Upshot of His Factoring Transaction?
The penultimate step was a final court review of the deal; a court confirmed the sale. He received his premium lump sum payment momentarily afterward. With the large bucks, Clark could now pay his bills without losing his mind, the business took a quantum leap, and his daughter now enjoys riding her horse inside the new ranch he bought.
Who Leads the Pack Among Structured Settlement Funding Companies?
Stone Street Capital will act as your legal representative in New Hampshire District Courts, book the nearest court hearing date and obtain a qualifying order from the judge to expedite your factoring transaction in a flash.
J.G Wentworth is the most prolific company with a vast portfolio to meet the largest lump sum claims, generate a quick offer and forward your agreement for execution within 24 hours after you retrieve a price quote.
Peachtree is a seasoned structured settlement purchasing company with expertise in lump sum buyouts for annuity owners, lottery winners, and payees.