Prior Transferee Qualifies As Interested Party
Article 2.3 Transfers of Structured Settlement Payment Rights
Prior Transferee Qualifies as Interested Party under SSPA’s with Joinder Rules
Courts should “consider” this option, it’s only fair, and efficient. It’s not law.
If you’re going into a second, third or fourth transfer, your previous transfer company that you did business with, could be party to your new application! Make sure your business dealings are in good shape with your old transfer company before moving on. You might want to consult an independent professional adviser first.
According to experts, “Courts should also be prepared to consider whether there are parties who may not fall within applicable SSPA definition(s) of “interested parties” but may nevertheless be indispensible parties.
If for example, a payee has ben party to a previous factoring transaction, the transferee in that prior transaction may have (or claim to have) an interest that extends to payment rights that are the subject of a new application.
Whether or not the prior transferee qualifies as an interested party under the applicable SSPA(s), it should nevertheless be made party to the new proceeding, based on applicable joinder rules because the prior transferee claims an interest in the subject payment rights.
Disposition of the new application in the prior transferee’s absence may impair its ability to protect its claimed interest and may leave the structured settlements obligor and annuity issuer subject to substantial risks of incurring double obligations.” Cf. FED. R. Civ. P. 19(a)
Information taken from “Transfers of Structured Settlement Payment Rights, What Judges Should Know About Structured Settlement Protection Acts”, Hindert and Ulman Copyright 2005 American Bar Association