Litigation

Structured Settlements 4Real has learned that one of the nation's leading QSF jockeys (a/k/a "Champions of the QSF") has been "bucked" from a case after the QSF jockeys failed to convince the plaintiff attorney that the only reason the QSF was being proposed wasn't essentially a scheme hatched to allow the QSF jockey to (1) write an annuity and (2) line "the jockey's" firm's pockets to the tune of almost "100 large". OUCH!

Plaintiff attorneys, a qualified settlement fund has its place in the settlement planning process on certain cases. In those cases, particularly those involving multiple claimants (or multiple defendants each making tiny contributions to the settlement that add up to a large number) it can be an incredibly useful tool. 

Please consider the following caveats:

1. Certain settlement planners claim the use of a qualified settlement fund in a single claimant case will get your client full annuity market access.  Take it from me, it won't. Very few qualified assignees will accept an assignment on a single claimant case, down since 5-7 years ago when the concept first gained popularity. If your local QSF jockey will state in writing that he or she can get you full market access under these circumstances please get it in writing and send it to me for verification and publication. 
2. You cannot do a structured settlement out of a QSF without a qualified assignment since most QSFs will be closed well before the duration of the structured settlement.
3. It has been established in some states that the payment of QSF administration fees by the settlement planner is illegal. Thus, on a single claimant case, the costs to your client may be increased with no measurable benefit. Demand that the settlement planner disclose all of those costs up front and ask your client if he or she is willing to bear them.
4. Certain settlement planners claim the use of a qualified settlement fund in a single claimant case will get your client total control. What use is this form of total control if your client does not get the benefit of market competition on structured annuity pricing and/or your costs are increased?

In my understanding of the matter at hand there was no need for a QSF.

• There were no market restrictions on the placement of the structured settlement
• The defendant's insurer has an extraordinary track record of timely funding of structured settlements
• The financial representative for the defendant's insurer had no problem co-brokering and the QSF jockey had worked with the consultant previously.

So the QSF jockey walked away with nothing. Instead of doing the right thing for the tort victim, he has lost the case to a competitor and may have lost the client. What an idiot, in my opinion!