The doctrine of strict liability imposes culpability on defendants who produce or maintain abnormally dangerous products or activities. Strict liability operates on an explicit or implied warranty guaranteed by the manufacturer imposed by the law to prevent manufacturers from escaping liability. Accordingly, no matter what exclusion clauses or contract warranties stipulate, the manufacturer bears burden just to attribute responsibility to the maker of defective products. By pinning the blame on manufacturers who have deeper pockets, they can adequately pay compensation money to personal injury victims with no means of keeping harm at bay. The remedies available to a plaintiff in a strict liability lawsuit do not rely on complexities of the commercial law. To establish strict liability, the claimants needs to demonstrate that they sustained injuries while using the product in a means or purpose provided by the manufacturer but a flaw in design or production rendered it unsafe obliviously.
Tom Lindsay came into contact with tiny pieces of lead dropped near their residential home by an electricity company. A lawsuit predicated on the theories of strict liability resulted in a settlement with the company vesting in him a future income stream. A structured settlement refers to an arrangement in the resolution of a tort suit where the substantial amounts of cash devolve to recipients in little by little. Like lottery winners, some tort claimants opt for a structured settlement due to its tax-friendly benefits. A few years down the line, the worm turns. Lindsay felt encumbered by the inflexibility of the structured settlement and decided to convert it into a lump sum.
Sell Structured Settlement
Did He Make the Right Call to Sell His Structured Settlement?
Lindsay decided to sell his structured settlement when he needed hard currency to take advantage of and retrieve a lump sum payment. Structured settlement annuities open a new can of worms down the road as everyone always runs out of money and seeks to boost their cash in hand.
Was he allowed to sell his structured settlement?
Yes. Lindsay explored the factoring industry and solicited free quotes from the buyers of structured settlement annuities. The annuity contract had an anti-assignment clause, but the court allowed him to go ahead with the sale. Structured settlement purchasing companies assess your income stream and determine whether the court will allow the sale or not.
How much did it cost him to sell his structured settlement?
It costs almost nothing to sell structured settlement payment rights. Lindsay received a disclosure statement that highlighted a list of fees deductible from the purchase price. You don’t have to worry much as courts assess the transaction for fairness and reasonability in discounting the lump sum. The actual cost of his factoring deal relied on the discounted rate applied to acquire those future payments.
Did he pay any taxes to sell his structured settlement?
The Internal Revenue Code provides an exemption for 40% excise tax and other duties to structured settlement funding companies and sellers on court-sanctioned deals. As the transaction complied with all federal and state laws, Lindsay did not incur any taxes. However, his lump sum value would not get the tax-free benefits provided to recipients of periodical payments.
How does the lump sum payable in contrast to secured loans regarding annual interests?
Lindsay’s transaction bears an analogy to consumer loans for the monthly payments assigned. The lump sum cashable in the transaction matches the principal value of a loan, and the amount payable is repaid through the future income stream creamed off to the factoring company. Lindsay spotted the effective interest rate contained in the disclosure statement and could determine whether he got a large share of the pie or not.
Top 3 Structured Settlement Companies That Knock Rivals Into A Cocked Hat
Olive Branch Funding will give you a novation representative to dissect the complexities of the transaction in plain English, assess the payment rights or annuities for a generous lump sum price offer and low discount rates.
Fairfield Funding responds to your request with a near-accurate, up-for-grabs lump sum offer, files a competent application in the county court of competent jurisdiction and persuades the judge to affirm your petition quickly.
Woodbridge Structured Funding will craft a bespoke structured settlement transfer agreement, resolve objections from insurers and ensure you get a whack of your aggregate payments in one-off lump sum pay. The company also doles out cash advances and consideration to cash-strapped annuitants or payees.