American General Life Insurance Co. v. DRB Capital, LLC

The Supreme Court reversed the decision of the Court of Appeals upholding the circuit court’s approval of Ray Thomas’s future periodic payments to DRB Capital, LLC in exchange for an immediate lump sum payment at a discounted rate after Thomas settled a workers’ compensation claim against his employer and its workers’ compensation insurer, holding that the underlying contracts’ anti-assignment clauses are enforceable and that the Kentucky Structured Settlement Protection Act (KSSPA) does not apply to workers’ compensation settlements.Less than six months after settling his claim, Thomas received the circuit court’s transfer approval. The circuit court approved the transfer pursuant to the KSSPA. The court of appeals upheld the circuit court’s approval. The Supreme Court reversed, holding that explicit anti-assignability clauses in the underlying contracts and statutory language limiting the KSSPA to tort settlements required reversal in this case. View "American General Life Insurance Co. v. DRB Capital, LLC" on Justia Law