In the world of sporting, courts do not impose negligence if it falls within the “contact sports exception.” The contact sports exception bars negligence claims and imposes liability for injuries sustained due to the actions or omissions, willful, negligent or intentional of players to participants. However, where the tort claimant is not a player in the ensuing sport, they may be allowed to pursue a claim founded on ordinary negligence. The claim can only succeed where the circumstances of the injury, the relationship between the litigants and policy considerations do not offend the letter and spirit of the contact sports exception. Coaches and sporting organizations should rein in activities that pose a risk to fans outside the field. A personal injury claim hinged on negligence in the area can amount to actionable torts and yield plaintiffs compensation.
During a rehearse in 2010, Arnold Scott had just walked out of a washroom approaching the pitch when he got struck in the eye by a hockey disc shot by one of the players. His skull got fractured and inflicted severe retinal injury, which leads to permanent loss of vision in the right eye. As he did not partake as a voluntary participant, typically barred by assumption of risk in the physical contact innate in the game of ice hockey his claim could succeed. The hockey club decided to settle the allegation. Scott got a structured settlement which provided a future income stream with periodical payments and annuities. When Scott started pinning for immediate cash, he pinned his all his hopes on the money recoverable from the sale of his structured settlement.
Sell Structured Settlement
Tennessee’s Structured Settlement Protection Act (SSPA) Shields Her Against Exploitation
Tennessee’s SSPA protected him from turning over his vested payment rights for worthless consideration. The act required the buyer of annuities to disclose the detailing of the proposed transfer agreement and a court to approve the transaction upon the findings it served his best interests. The structured settlement purchasing company applies a factoring discount. The factoring discount which he received in the sale agreement disclosed the total undiscounted value of the income stream divided by the amount of the lump sum payment he would receive.
Revised Tennessee’s SSPA New Safeguards
The revised code introduced new requirements that structured settlement purchasing companies must abide by to get court approval. The new provisos provide robust protections by requiring that petitions proceed in the circuit court where he resided. He had to appear in person, and the judge could only excuse him from the hearing for a reasonable and justifiable reason. He also filed an affidavit describing a previously approved transfer. The new requirements captured in the Tennessee Senate Bill No. 760 came into effect when the Governor Bill Haslam gave his assent on April 14, 2016.
His Deal Involved A Servicing Arrangement, What did it entail?
Scott and the structured settlement buying company entered into a servicing agreement which got the court’s approval. The servicing agreement enjoins the issuer or “obligor” to disburse and remit to the structured settlement buyer 100% of the future income stream he had traded. The structured settlement financing company would hold the segment of payments acquired and remit the remainder to Scott. It scales back the transactional costs as the insurance company, or annuity issuer does not have to split up payment between two payees.
Slice of His Pie, Scott’s Lump Sum Fed to His Account before He Even Knew
Following the court approval, his lump sum payment was in the pipeline. To Scott factoring turned out to be in for a penny, in for a pound. He received the lump sum cash up front as agreed with the buyer of annuities without incurring further charges or fees. Scott transferred and assigned 50 of the 100 periodic payments totaling $290,000 in return for $230,000.
Companies at the Top of the Pecking Order in the Factoring Industry
- JG Wentworth: The Company has the longest industry experience under the belt. Wentworth liaises with the judge and court bureaucracy to help annuitants, payees and lottery winners get immediate payment. The company provides each seller of annuities, structured settlement income stream, and lottery winnings a novation representative to punch you through the complicated legal process.
- Olive Branch Funding: this company has carved out a reputation as a buyer of structured settlements, annuities and lottery awards. Olive Branch Funding provides a negotiable, freemium quote and price offer. The company’s resourceful logistics and resources have helped cut down transactional costs.
- SenecaOne: not only puts down a transfer agreement in writing but also adheres to structured settlement regimes and cross-cutting consumer protection laws to ensure payees get lucrative at full pelt.