You are here: / / RECOVERY OF A $280,000 SETTLEMENT PURPORTEDLY PAID TO DEFENDANTS BY PLAINTIFF...

RECOVERY OF A $280,000 SETTLEMENT PURPORTEDLY PAID TO DEFENDANTS BY PLAINTIFF IS BARRED BY THE STRUCTURED SETTLEMENT PROTECTION ACT WHICH REQUIRES COURT APPROVAL PRIOR TO PAYMENT (SECOND DEPT).

The Second Department, reversing Supreme Court, determined the complaint seeking to recover settlement funds ($280,000) purportedly made to the defendants should have been dismissed. The settlement was never approved by a court in violation of the Structured Settlement Protection Act (SSPA) (General Obligations Law 5-1701):

… [D]efendants demonstrated that the complaint fails to state a cause of action, on the ground that the plaintiff’s claims are prohibited by the SSPA. Enacted in 2002, the purpose of the SSPA … was to establish “procedural safeguards for those who sell settlements that are awarded as a result of litigation,” due to a recognition that “[m]any of the people who receive such settlements are being compensated for very serious, debilitating injuries, and have been unfairly taken advantage of in the past by the businesses that purchase their settlements” … . “Under this law, transfers such as the one at issue are prohibited unless approved by a court of competent jurisdiction based upon express findings … that the transfer is in the best interest of the payee and that the discount rate, fees and expenses used to determine the net amount advanced are fair and reasonable” (… General Obligations Law § 5-1706). In circumstances … where payment for a structured settlement transfer is made to the payee prior to the court’s approval of the transfer, whether intentionally or due to a mistaken belief that the transfer had already been approved, a proposed transferee must seek nunc pro tunc approval of the transfer, and such approval is not guaranteed … . Pinnacle Capital, LLC v O’Bleanis, 2023 NY Slip Op 01540, Second Dept 3-22-23

Practice Point: The Structured Settlement Protection Act (General Obligations Law 5-17-1 et seq) requires court approval of structured settlements. If, as here, there was no court approval before plaintiff purportedly paid the funds to defendants, the plaintiff seeking to recover the funds from the defendants may be out of luck.

You might also like
ARGUMENTS FIRST RAISED IN REPLY PAPERS PROPERLY REJECTED (SECOND DEPT).
Hearsay, Although Admissible, Will Not Alone Raise a Triable Issue of Fact/A “Contractor” (Within the Meaning of Labor Law 240 (1)) Need Only Have the Authority to Control the Work—It Need Not Actually Exercise that Authority
Prosecutorial Misconduct and Defense Counsel’s Ineffectiveness Required Reversal
A SMOOTH SLIPPERY SURFACE, STANDING ALONE, WILL NOT SUPPORT A CAUSE OF ACTION FOR NEGLIGENCE IN A SLIP AND FALL CASE.
Action Abandoned, Should Not Have Been Restored
A TITLE HOLDER WHO DID NOT SIGN THE NOTE BUT DID SIGN THE MORTGAGE IS ENTITLED TO THE RPAPL 1304 NOTICE OF FORECLOSURE (SECOND DEPT).
A TRIAL JUDGE DOES NOT HAVE THE AUTHORITY TO CONDUCT A WEIGHT OF THE EVIDENCE ANALYSIS, ONLY THE APPELLATE DIVISION HAS THAT POWER.
SIGNATORY TO AGREEMENT WITH AN ARBITRATION CLAUSE CANNOT AVOID ARBITRATION SIMPLY BECAUSE PARTIES ENTWINED IN THE PROCEEDINGS ARE NOT SIGNATORIES (SECOND DEPT).

Categories

Sign Up for the Mailing List to Be Notified When the Site Is Updated.

  • This field is for validation purposes and should be left unchanged.

Copyright © 2026 New York Appellate Digest, Inc.
Site by CurlyHost | Privacy Policy

​ THE MISDEMEANOR INFORMATION WAS BASED ON THE POLICE OFFICER’S UNEXPLAINED... THE NOTICE OF CLAIM IN THIS CHILD VICTIMS ACT SUIT AGAINST THE STATE SUFFICIENTLY...