IN RE KAUFMAN 37 P.3d 845 (2001) CASE BRIEF

IN RE KAUFMAN

37 P.3d 845 (2001)

NATURE OF THE CASE: The United States Bankruptcy Court for the Western District of Oklahoma certified two questions.

FACTS: Kaufman (debtor/annuitant/assignor), settled a wrongful death claim with Love's Country Stores, Inc. and United States Fidelity & Guaranty Company (Insurer). The settlement agreement provides for a lump-sum payment and for periodic monthly payments of $2,008.75 measured by Kaufman's life with a twenty-year payment guarantee. The settlement agreement specifically provides that Kaufman has no 'power to sell, mortgage, encumber, or anticipate the future payments by assignment or otherwise'. After seeing a television commercial involving purchases of structured settlements aired by J.G. Wentworth S.S.C., Kaufman called and requested the paperwork necessary to complete the sale. Kaufman sold his right to receive sixty monthly annuity payments of $2,008.75 with a total value of $120,525.00 to Wentworth for a lump sum payment of $80,507.26. Wentworth was entitled to receive payments beginning in July of 1999 and running through June of 2004. Wentworth has received no payments since May of 2000. Kaufman started a trenching business. The business failed and Kaufman filed a voluntary Chapter 13 bankruptcy petition on September 22, 2000. Wentworth filed a motion for relief from the automatic stay requesting permission to seize the contracted-for annuity payments. Kaufman asserts that the purchase agreement is invalid due to the anti-assignment language in the settlement agreement. The court certified two questions.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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