In Re: F. Jones

2023 Pa. Super. 204, 305 A.3d 28
CourtSuperior Court of Pennsylvania
DecidedOctober 13, 2023
Docket1576 MDA 2022
StatusPublished
Cited by2 cases

This text of 2023 Pa. Super. 204 (In Re: F. Jones) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re: F. Jones, 2023 Pa. Super. 204, 305 A.3d 28 (Pa. Ct. App. 2023).

Opinion

J-A20042-23

2023 PA Super 204

IN RE: FRANK JONES : IN THE SUPERIOR COURT OF : PENNSYLVANIA : APPEAL OF: SUTTONPARK : STRUCTURED SETTLEMENTS LLC : : : : : No. 1576 MDA 2022

Appeal from the Order Entered September 12, 2022 In the Court of Common Pleas of Luzerne County Civil Division at No(s): 11843 of 2016

BEFORE: PANELLA, P.J., MURRAY, J., and STEVENS, P.J.E.*

OPINION BY STEVENS, P.J.E.: FILED: OCTOBER 13, 2023

SuttonPark Structured Settlements LLC (“SuttonPark”) appeals from the

order entered in the Court of Common Pleas of Luzerne County, which granted

the petition of Frank Jones (“Jones”) to vacate a transfer order entered under

Pennsylvania’s Structured Settlement Protection Act (“SSPA”), 40 P.S. §§

4001-4009. After a careful review, we affirm.

The relevant facts and procedural history are as follows: After Jones

suffered a personal injury, litigation and a settlement followed whereby Jones

received a structured settlement annuity issued by Metropolitan Life Insurance

Company (“Metropolitan Life”). Specifically, under the structured settlement,

Jones was to receive 72 monthly payments of $2,598.56 (from November 28,

2021, to October 28, 2027). However, in an effort to receive one lump sum

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* Former Justice specially assigned to the Superior Court. J-A20042-23

payment, under the SSPA, Jones entered into a purchase agreement with

Advance Funding LLC (“Advance Funding”) to transfer his rights to the future

structured settlement payments to Advance Funding in exchange for a lump

sum purchase price of $75,000.00.1

On November 22, 2016, Jones, who was pro se, and Advance Funding,

who was represented by counsel, jointly filed a “Petition to Transfer Structured

Settlement Pursuant to 40 P.S. § 4001 et seq.” Therein, Jones and Advance

Funding requested the trial court approve their purchase agreement as

described supra regarding “the sale of the structured settlement payment

stream.” Petition, filed 11/22/16, at 2. They indicated Advance Funding had

provided Jones with a Disclosure Statement pursuant to 40 P.S. § 4003, and

it would be in Jones’ best interest for the trial court to approve the purchase

agreement since Jones desired to purchase a home, an automobile, and

1 Relevantly, under the SSPA, a “payee” is defined as a person who “is receiving tax-free payments under a structured settlement and proposes to make a transfer of payment rights thereunder.” 40 P.S. § 4002. A “transferee” is defined as “[t]he party acquiring or proposing to acquire structured settlement payment rights through a transfer.” Id. A “transfer agreement” is defined as “[t]he agreement providing for transfer of structured settlement payment rights from a payee to a transferee.” Id. The SSPA provides that no transfer of structured settlement payments may occur unless “the payee has filed a petition requesting such transfer and the petition has been granted by final order or decree of a court of competent jurisdiction[.]” 40 P.S. § 4003(a). In the case sub judice, Jones was the payee, and he entered into a transfer agreement with Advance Funding as the transferee. Thereafter, as discussed infra, the trial court granted the parties’ petition requesting the transfer, and Advance Funding then assigned its rights under the transfer agreement to SuttonPark.

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automobile insurance. Moreover, the parties noted Advance Funding would be

transferring its interests to a designated assignee.

Thus, Jones and Advance Funding indicated they “request the [trial]

court to approve and authorize the sale of a structured settlement payment

stream between [Metropolitan Life] and Jones to be sold and transferred to

Advance Funding’s LLC’s designated assignee.” Petition, filed 11/22/16, at 2.

By order entered on January 25, 2017, the trial court granted the

petition to transfer the structured settlement agreement. Specifically, the trial

court relevantly indicated:

1. Payee has established that the transfer is in the best interest of the Payee or the Payee’s dependents; 2. Based on the certification by an attorney for Transferee, and the court having not been made aware of any statute, regulation or order that would be incompatible with the proposed order, the transfer will not contravene any applicable federal or state statute or regulation, or the order of any court or administrative authority; 3. The transfer complies with the remaining requirements of the Structured Settlement Protection Act, including Section 3(a)(2), 3(a)(4), 3(a)(5), and 3(a)(6); 4. The payments are to be transferred to Transferee’s assignee, payable pursuant to annuity policy bearing policy number **** (“Annuity Policy”) and are designated as follows: Seventy-Two (72) monthly payments of $2,598.56 due on or about November 28, 2021, and the 28th of each month thereafter, through and including October 28, 2027, increasing at a rate of 3% per annum each November 28th (“Assigned Payments”). 5. The terms of this order shall survive the death of the Payee and shall be binding on the Payee’s heirs, beneficiaries, and assigns. 6. The Payee shall receive from the Transferee, as soon as is practicable following receipt of a non-appealable final order the

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amount of $75,000.00, from which no funds are owed for counsel fees, administrative fees, or other costs, fees, or expenses.

Trial Court Order, filed 1/25/17, at 1-2.

On July 7, 2022, Jones filed a counseled “Petition for an Order Striking

the Judgment and Vacating the Order of [the trial] court [entered on] January

25, 2017.” Therein, Jones relevantly averred:

3. [Advance Funding] did not pay the purchase price to Jones as required by paragraph 6 of the [trial court’s January 25, 2017,] transfer order. 4. Because [Advance Funding] did not pay the purchase price to Jones, the transfer violated the Pennsylvania Structured Settlement Protection Act[.] 5. Jones has attempted to contact [Advance Funding] on many occasions and [Advance Funding] has failed to respond. 6. Upon information and belief, [Advance Funding] is no longer in business. Several default judgments have been entered against [Advance Funding] in New York. 7. Further, the principal of [Advance Funding], Dan Cevallos, is a convicted felon, and was barred from acting as a broker by the Financial Industry Regulatory Authority (“FINRA”). 8. [Advance Funding’s] “assignee”…is SuttonPark[.] 9. Upon information and belief, SuttonPark is receiving periodic payments from the annuity issuer (Metropolitan Life) in the amount of $2,598.56 per month, and has to date, received these monthly payments since November 28, 2021. *** 12. Upon information and belief, both the annuity issuer (Metropolitan Life) and the obligor (Metropolitan Tower Resources Group, Inc.) received notice of the 2017 transfer petition and the transfer order, as required by 40 [P.S.] § 4004. *** 14. In a case in New Jersey with a similar fact pattern, the transfer order was recently vacated. In re Tavarez, 2021 N.J. Super. Unpub. Lexis 1062 (Superior Court of New Jersey, Law Division,

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Bergen County, Docket No. BER-L-4041-16). That case also involved Advance Funding, SuttonPark, and Metropolitan Life[.] 15. Court approval of the transfer petition was specifically premised upon Jones’ receipt of $75,000.00. Jones did not receive the $75,000.00[.]

Jones’ Petition, filed 7/7/22, at 1-3 (citations to record omitted).

Jones requested the trial court vacate the January 25, 2017, transfer

order, strike any judgment, and restore the periodic structured payments to

Jones.

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Related

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In Re: F. Jones
2023 Pa. Super. 204 (Superior Court of Pennsylvania, 2023)

Cite This Page — Counsel Stack

Bluebook (online)
2023 Pa. Super. 204, 305 A.3d 28, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-f-jones-pasuperct-2023.