Thursday, April 20, 2006
Does the Uniform Commercial Code apply to structured settlements of tort cases? No, you're likely to react, but it's a closer question than it seems.
Closer, but not close enough, according to a decision last year by the U.S. Court of Appeals for the Ninth Circuit. The case, reported by Mike C. Buckley of Reed Smith’s Oakland office in Ninth Circuit Holds UCC Does Not Apply to Structured Settlement of Tort Claim, involved a consumer who assigned her tort settlement interest to a third party, gave it a security interest (properly filed), went bankrupt, and reneged on the deal.