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HomeMy WebLinkAbout13-0174 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA RE: Joint Petition of Peachtree Settlement No. 2013-174 Civil Funding, LLC and Glenn Montgomery . ORDER Petitioner Peachtree Settlement Funding, LLC ("Transferee"), having petitioned this Court for an Order pursuant to the Pennsylvania Structured Settlement Protection Act, 40 P.S. § 4001, et seq. (the "Pennsylvania Act") approving the transfer of structured settlement payment rights pursuant to a transfer agreement ("Transfer Agreement") between Transferee and Glenn Lamont Montgomery ("Montgomery" or "Payee"), and upon all papers and pleadings in this matter, and the Court having held a hearing on this matter on April 4, 2013, and due deliberation being had thereon, the Court hereby makes the following express findings: 1. This Court has jurisdiction over this matter pursuant to the Pennsylvania Act; 2. The transfer of the structured settlement payments complies with the requirements of the Pennsylvania Act and Connecticut General Statutes § 52-225g et seq. (the "Connecticut Act") (collectively, "Applicable Acts"); 3. The only interested parties to this action as defined by the Applicable Acts, or parties who may otherwise be entitled to receive notice, are as follows: Payee: Glenn Lamont Montgomery 112 Timber Lane Shippensburg, PA 17257 Payee's Spouse: Cassandra Montgomery 112 Timber Lane Shippensburg, PA 17257 Structured Settlement Obligor: Hartford Accident and Indemnity Company ("Hartford") One Hartford Plaza., HO-1-10 Hartford, Connecticut 06155 Annuity Issuer: John Hancock Life Insurance Company (U.S.A.) f/k/a Manufacturers Life Insurance Company ("John Hancock") 601 Congress Street Boston, MA 02210 1 BE01/936151.1 4. The Court has determined, pursuant to the Applicable Acts, that the transfer is in the best interest of the Payee, taking into account the welfare and support of Payee's dependents, if any; 5. Not less than 10 days prior to the date on which Montgomery first incurred any obligation with respect to the proposed transfer, Transferee provided to Montgomery a disclosure statement in full compliance with 40 P.S. § 4003(a)(2); 6. Montgomery has received or expressly waived in a separate written acknowledgment signed by Montgomery, independent legal advice regarding the implications of the proposed transfer, including consideration of the tax ramifications of the proposed transfer; 7. Based on the certification by the attorney for Transferee, and the court having not been made aware of any statute, regulation, or order that would be incompatible with the proposed transfer, the transfer will not contravene any applicable federal or state statute or regulation, or the order of any court or responsible administrative or governmental authority or any applicable law limiting the transfer of workers' compensation claims; 8. Transferee has given written notice of its name, address, and taxpayer identification number to John Hancock and Hartford and has filed a copy of such notice with the Court; 9. Transferee and Montgomery have timely filed and served on all interested parties, including John Hancock and Hartford, a notice of the proposed transfer and the application for its authorization in compliance with the requirements of 40 P.S. § 4004; 10. Montgomery and his spouse have consented, in writing, to the proposed transfer; 11. The Court has jurisdiction over this matter pursuant to 40 P.S. § 4001, et seq.; 12. The proposed transfer complies with the requirements of 40 P.S. § 4001, et seq. and 26 U.S.C. § 5891, and will not contravene other applicable law; 13. The transfer complies with the requirements of 40 P.S. § 4001, et seq. and 26 U.S.C. § 5891, and does not contravene any applicable statute or the order of any court or other governmental or administrative authority; 14. Montgomery is entitled to receive payments from an annuity issued by John Hancock Life, annuity contract number 17153-30003-4027722 / 4,027,722-0 (the "Periodic Payments"), and purchased by Hartford, which funds payments due under a Settlement Agreement and Release. The Periodic Payments due under the annuity originally were monthly payments of$1,395.00 each, beginning on May 1, 1987 through and including April 1, 2022 and continuing for the life of Montgomery thereafter; 15. By Order dated April 18, 2005, Montgomery was granted leave to assign monthly payments of$1,395.00 each, beginning on January 1, 2005 through and including April 1, 2022 to Structured Asset Funding, LLC, pursuant to annuity contract number 17153-30003-4027722 / 4,027,722-0, for a total of$290,160.00; 2 BE01/936151.1 16. Montgomery currently seeks to transfer the following Periodic Payments to Transferee: monthly life-contingent payments of $1,370.00 each, beginning on May 1, 2022 through and including December 1, 2031 (the "Assigned Life-Contingent Payments"). These payments are not due and payable unless Montgomery is alive at the time each such payment is due; and 17. Montgomery is domiciled in the Commonwealth, making this Court an appropriate forum for the filing and prosecution of this Petition. Now,based upon the foregoing express findings, it is hereby: ORDERED that the Petition of Transferee is granted; and it is further ORDERED that Hartford and John Hancock (collectively "Insurers") shall recognize and honor the terms of this order(the "Order"); and it is further ORDERED that, pursuant to the Pennsylvania Act, Montgomery is granted leave to assign the following Periodic Payments: monthly life-contingent payments of $1,370.00 each, beginning on May 1, 2022 through and including December 1, 2031, pursuant to the Settlement Agreement and Release and the John Hancock Life annuity contract number 17153-30003- 4027722 / 4,027,722-0. The Assigned Life-Contingent Payments, a total of$158,920.00, are in exchange for a net lump sum payment of $5,340.00 to be paid to Montgomery only by Transferee; and it is further ORDERED that, subject to all of the conditions set forth in this Order, Hartford and John Hancock shall remit the Assigned Life-Contingent Payments to Transferee at the following address: Peachtree Settlement Funding, LLC P.O. Box 83364 Woburn, MA 01813-3364 and it is further ORDERED that Hartford and John Hancock shall, as to all parties except Transferee, be discharged from any and all liability for the Assigned Life-Contingent Payments; and it is further ORDERED that the obligation to make any of the Assigned Life-Contingent Payments to Transferee or any other party ceases on Montgomery's death. Nothing in the Petition, the proposed transfer, this Order, any other document or matter changes the fact that each of the Assigned Life-Contingent Payments is owed only if Montgomery is alive on the scheduled due date of such payment; and it is further ORDERED that Transferee shall provide to John Hancock and Hartford, not less than ninety (90) days prior to the due date of the first Assigned Life-Contingent Payment (i.e., May 1, 2022), a written confirmation, contemporaneously signed by Montgomery and notarized, that Montgomery is alive (the "Initial Required Confirmation"). Every one-hundred eighty (180) days thereafter and at any time upon reasonable request of John Hancock or Hartford, until the 3 BE01/936151.1 due date of the last Assigned Life Contingent Payment, Transferee shall provide John Hancock with written confirmation, contemporaneously signed by Montgomery, that Montgomery is alive (the "Required Confirmation"). The Required Confirmation should be forwarded to John Hancock at 601 Congress Street, Boston, MA 02117, Attention: Structured Settlements. Montgomery and Transferee shall cooperate with one another and with John Hancock and Hartford for purposes of providing each Required Confirmation. In lieu thereof, Transferee may retain a recognized independent mortality tracking company (the "Mortality Tracking Company") (i.e. The Berwyn Group) to track Montgomery's mortality on a quarterly basis throughout the duration of the Assigned Life-Contingent Payment stream. Such Mortality Tracking Company shall forward to John Hancock quarterly reports evidencing whether or not Montgomery is still alive. These quarterly reports may be used as a substitute of the Required Confirmation and the Initial Confirmation. If used as a substitute of the Initial Confirmation, such report shall be forwarded ninety (90) days prior to the due date of the first Assigned Life- Contingent Payments (i.e., May 1, 2022). In the event that Transferee acquires information indicating that Montgomery has died, Transferee shall immediately provide John Hancock and Hartford with this information in writing directed to John Hancock and Hartford; and it is further ORDERED that if Transferee fails to provide the Required Confirmation that Montgomery is alive, or if John Hancock or Hartford has any reasonable basis to believe that Montgomery has died, John Hancock may suspend making the Assigned Life-Contingent Payments until John Hancock has received the Required Confirmation. Upon request by John Hancock or Hartford, Transferee shall make available for inspection and copying any and all documents received by Transferee evidencing Montgomery's survival or, alternatively, evidencing Montgomery's death; and it is further ORDERED that in any event, to the extent any of the Assigned Life-Contingent Payments for which the scheduled due date is a date subsequent to the date of Montgomery's death, Transferee shall (i) refund such payment(s) in full to John Hancock within ten (10) days of its receipt of such payment(s) or, if later, within ten (10) days of its receipt of confirmation of Montgomery's death, plus interest at 6% per annum from the date that the funds were paid through the date reimbursement is tendered; and it is further ORDERED that Transferee has not purchased or acquired and agrees not to purchase or acquire, any life insurance policy on the life of Montgomery from John Hancock , Hartford, or any of their respective parents, subsidiaries, or affiliates, that relates in any way to the proposed transfer or the Assigned Life-Contingent Payments; and it is further ORDERED that Transferee and its affiliates and successors in interest shall defend, indemnify and hold harmless Hartford and John Hancock and their successors and assigns, parents, affiliates, and subsidiaries from and against any and all liability from all claims in connection with, related to, or in any way arising out of the Purchase Agreement, the Petition, or this Order, whether such claims are brought by the Payee (including heirs, dependents, beneficiaries, contingent beneficiaries, or executors), or by any other individual or entity. To the extent Transferee fails to honor this indemnification and defense obligation, Hartford and John Hancock may, in addition to all other remedies afforded by law, satisfy the same by withholding to their own credit any remaining Assigned Life-Contingent Payments; and it is further 4 BE01/93615 1.1 ORDERED that the Transferee shall be liable to Hartford and John Hancock for any liabilities, taxes or costs of any kind, including reasonable costs and attorneys' fees arising from compliance by Hartford and John Hancock with this Order and/or arising as a consequence of the Transferee's failure to comply with applicable law; and that, if, as a consequence of the Transferee's failure to comply with applicable law, the Transferee owes any amount to Hartford and John Hancock, then the Transferee expressly grants to the Hartford and John Hancock the right to recover any liabilities, taxes, costs of any kind, and attorneys' fees, as well as their attorneys' fees relating to the above-captioned action; and it is further ORDERED that this Order in no way modifies or negates the ownership or control of the underlying contract by Hartford and is entered without prejudice to the rights of Hartford and John Hancock and the lack of opposition by Hartford and John Hancock to this transfer, and their compliance with this Order, shall not constitute evidence in this or any other matter regarding: (i) the assignability of payments under a structured settlement agreement or annuity contract or related contracts or whether such payments can be assigned; (ii) the enforceability of provisions that restrict and/or preclude assignment of payments under a structured settlement agreement or annuity contract or related contracts or orders; (iii) the validity of other transactions entered into by Transferee; or (iv) whether Hartford and John Hancock have waived any right in connection with any other litigation or claims or rights other than the rights to the Assigned Life-Contingent Payments as described above; and it is further ORDERED that after Insurers change the address for the Assigned Life-Contingent Payments to the above designated address ("Designated Address"), then Insurers shall not again be required to change the address for the Assigned Life-Contingent Payments; however, the Transferee may request and Insurers will reasonably grant up to one address change per calendar year; and it is further ORDERED that in the event that Transferee further assigns rights to the Assigned Life- Contingent Payments (or any portion thereof)to any other person or entity, then Insurers will not themselves be obligated to redirect the Assigned Life-Contingent Payments (or any portion thereof) to any person or entity other than Transferee, and Insurers shall have no duty or obligation to any person other than Transferee, and if Transferee is granted approval to further assign the Assigned Life-Contingent Payments, Transferee will continue to service the Assigned Life-Contingent Payments; and it is further ORDERED that if the Payee, for himself and for his assigns, heirs, and administrators, or individuals or entities that may claim through them, hereby remise, release, and forever discharge Hartford and John Hancock and their directors, shareholders, officers, agents, employees, servants, reinsurers, successors, and assigns, and any parent, subsidiary, or affiliate thereof, and their directors, shareholders, officers, agents, employees, servants, successors, and assigns, past and present, of and from any and all manner of actions and causes of actions, suits, debts, dues, accounts, bonds, covenants, contracts, agreements,judgments, settlements, damages, claims, and demands whatsoever, in law or in equity, arising out of, related to, or in connection with the Assigned Life-Contingent Payments identified herein, or Hartford's or John Hancock's compliance with this Order; and it is further 5 BE01/93615L I ORDERED that if, prior to the issuance of this Order or within thirty (30) days after the entry of this Order, Insurers send any of the scheduled Assigned Life-Contingent Payments to the Payee that came due and owing under the settlement and annuity in those time periods, it is adjudged that Insurers have fulfilled their obligations to the Payee and to Transferee with respect to any such payment(s); and it is further Transferee agrees to seek recovery solely from Montgomery for those Assigned Life-Contingent Payments made by John Hancock and Hartford prior to the receipt of the foregoing. ORDERED that any further transfer of structured settlement payment rights by the Payee and/or Transferee shall be made in compliance with all of the requirements of Applicable Acts; and it is further ORDERED that this Order is binding on any and all successors of the Payee, of other interested parties, and of Transferee; and it is further ORDERED that the Payee shall not incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to Transferee or any other person based on any failure of the transfer to satisfy the Applicable Acts; and it is further ORDERED that Transferee, by its counsel Robert A. Maro, Esquire, expressly represents to the Court that it is a corporation in good standing and that it hereby submits to the jurisdiction of this Court for the purpose of the entry and enforcement of this Order; and it is further ORDERED that this Order shall constitute a final "Qualified Order" within the meaning of 26 U.S.C. § 5891. AND IT IS SO ORDERED THIS4 DAY OF APRIL 2013. JUDGE hand &Jluered fLAGI q/4//3 cz) D((� =M r n cn CD =r r- . r C: r ry 6 BE01/936151.1 AGREED TO AND APPROVED AS TO FORM AND SUBSTANCE: PAYEE, i enn Lamont Montg ery 12 Timber Lane Shippensburg, PA 17257 PEACHTRE TTLEMENT FUND , LLC by its atto ey , o A. Maro,Esquire Maro&Maro,P.C. 1115 West Main Street Norristown, PA 19401 (610) 275-9600 7 BE01/936151.1