If the plaintiff engages a structured settlement broker to handle the transaction, is there constructive receipt?
No. Whether the defendant or plaintiff selects the broker is of no consequence to the constructive receipt issue as long as the money to fund the future payments goes directly to the annuity issuer or assignee. It is okay for a broker, even the plaintiff, to handle the check to fund future payments if the check is payable to the annuity issuer or assignee. There exists a “substantial limitation” to the broker or plaintiff being able to cash the check. Thus, there is no constructive receipt. Structured settlements handled by brokers of the plaintiff’s choice are very common and accepted as a practice of the industry.
Related Questions
- If the plaintiff negotiates in terms of how much the defendant will spend, in present-value dollars, is there constructive receipt?
- If the plaintiff engages a structured settlement broker to handle the transaction, is there constructive receipt?
- How can constructive receipt affect structured settlements?
