In a sliver of good news for the beleaguered giant of the factoring industry, JG Wentworth prevailed in the California Appeals Court in their twin cases referred to as Ramos and Tomahawk.
At the heart of this issue was an appeal by JG Wentworth and it's subsidiary 321 Henderson Receivables argument that a reversal of a transfer order of one Superior Court judge by another Superior Court judge was incorrect and that the original transfer order needed to be honored.
There was also the procedural issue of whether a transfer order can be withdrawn prior to a final decision and that was also decided in the affirmative.
I won't attempt to go into the details but will instead provide you with this video commentary and interview of Matt Bracy of The Factoring Channel and Settlement Capital on this decision.
At the end of the day this is a helpful decision for both the primary and secondary structured settlement markets as it confirms process, gives certainty on both sides that the transfer orders issued are solid and can not be over turned by another judge and permit the factoring transaction and transfer to be implemented according to the terms of the order. One more validation of the state model legislation that will hopefully be adopted in all 50 states so we can move off this issue as an industry and get on with the more important matters of keeping our life companies in the market for structures and growing our sales.
