Litigation

NSSTA Member's Obsession With JG Wentworth Presents Inconsistent Message To Trial Lawyers, Judges and Stakeholders

By John Darer

Dovetailing from his 5 part series about a series on JG Wentworth's statistically irrelevant survey of 116, Patrick HIndert has now set forth his intentions to begin a multi-part series promoting JG Wentworth.

What makes this interesting for trial lawyers, judges, regulators and plaintiffs is that Hindert is a Associate member of the National Structured Settlement Trade Association and former Executive Director.  NSSTA has a real dilemma on its hands. It seems unwilling to stifle Hindert's rights under the First Amendment even though Hindert's actions seem in conflict with and undermine the association's branding initiatives and its bylaws and permits Hindert to serve on its Legal Committee, where he serves at the pleasure of the NSSTA Board of Directors.

For the benefit of NSSTA members and other interested parties Article II 2 (C)(d) of the NSSTA Bylaws states that an Associate member (like Hindert) who is not eligible to be a Professional Member but has a legitimate interest in the business of the Association and may, in the sole discretion of the Board, be admitted to Associate Membership. An Associate Member shall have no vote nor be eligible to serve as Director or Officer of the Association. Associate Members may participate in Association activities as approved by the Board.

Currently no factoring companies or factoring brokers are members of NSSTA, with longtime former members James E. Lokey, Rhonda Bentzen and Symetra Life Insurance Company departed in recent years due to factoring actvities. Given the alleged power of the bylaws it is puzzling why Hindert's open promotion of factoring, in particular JG Wentworth, is permitted "in the sole discretion" of the NSSTA Board of directors.

This author proudly endures the consternation of certain members of the NSSTA Board of Directors for repeatedly calling this inconsistency into question and firmly believes his represents the majority view. When some trial attorneys question structuring due to the perception of easy factorability of structured settlements, what professional NSSTA member wants to be scarred with JG Wentworth promoter Hindert's membership? The NSSTA Board of Directors must simply get into the face of fear and must resolve the inconsistency.

If NSSTA Board does not resolve the inconsistency (which among other things affects the credibility of NSSTA) and  NSSTA Board continues to permit Hindert to do his factoring promotion thing as an associate member of NSSTA, why not scrap its own branding initiatives and adopt Hindert's "Structured Settlements 3.0", merge with the cash now pushers trade association NASP,  and have one single periodic payment industry? NOT!

Full post as published by Structured Settlements 4Real on December 07, 2008 (boomark / email).