RSL-3B-IL, Ltd. v. the Prudential Insurance Company of America and Prudential Structured Settlement Company F/K/A Prudential Property and Casualty Insurance Company of Holmdel, New Jersey

Court of Appeals of Texas·Decided September 9, 2015·No. 01-14-00482-CV·Published

Opinion

ACCEPTED

01-14-00482-cv

FIRST COURT OF APPEALS

HOUSTON, TEXAS

9/9/2015 3:32:58 PM

CHRISTOPHER PRINE

CLERK

NO. 01-14-00482-CV

FILED IN

1st COURT OF APPEALS

IN THE COURT OF APPEALS HOUSTON, TEXAS FOR THE FIRST DISTRICT OF TEXAS 9/9/2015 3:32:58 PM CHRISTOPHER A. PRINE

Clerk

RSL-3B-IL, LTD.

v.

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA, ET AL.

ON APPEAL FROM THE 269TH

DISTRICT COURT OF HARRIS COUNTY, TEXAS

RESPONSE OF APPELLEES THE PRUDENTIAL INSURANCE COMPANY OF AMERICA AND PRUDENTIAL STRUCTURED SETTLEMENT COMPANY F/K/A PROPERTY AND CASUALTY INSURANCE COMPANY OF HOLMDEL, NEW JERSEY TO APPELLANT'S MOTION FOR REHEARING OR MOTION FOR RECONSIDERATION EN BANC

Patrick B. Larkin Of Counsel: State Bar No. 24013004 Stephen R. Harris plarkin@larkin-law.com Drinker Biddle & Reath LLP The Larkin Law Firm PC One Logan Square, Suite 2000 11200 Broadway Street, Suite 2705 Philadelphia, PA 19103-6996 Pearland, Texas 77584 Telephone: (215) 988-2700 Telephone: (281) 412-7 500 Facsimile: (215) 988-2757 Facsimile: (281) 412-7502

Counsel for Appellees The Prudential Insurance Company of America and Prudential Structured Settlement Company f/k/a Prudential Property and Casualty Insurance Company of Holmdel, New Jersey

TABLE OF CONTENTS

Page

I. ARGUMENT ................................................................................................. 4 A. Standard of Review ................................................................... 4 B. This Case Was Not a Collateral Attack..................................... 5 C. The Trial Court's Decision Should be Affirmed ....................... 7 D. RSL Misconstrues the Texas SSPA ................................ .......... 9 E. The Court Did Not Expand the Meaning of Transferred Payments .................................................................................. I 0 II. CONCLUSION ............................................................................................ 14 III. PRAYER FOR RELIEF ............................................................................... 14

TABLE OF AUTHORITIES

Page(s)

CASES

Brookshire Bros., Inc. v. Smith, 176 S.W.3d 30 (Tex. App. -Houston [1st Dist.] 2005, pet. denied) ................... 4

Dall. Nat'/ Ins. Co. v. Calitex Corp., 458 S.W.3d 210 (Tex. App. -Dallas 2015) .......................................................... 6

Harris v. Balderas, 27 S.W.3d 71 (Tex. App.-San Antonio 2000, pet. denied) ............................... 6

Johnson v. Structured Asset Servs., LLC, 148 S.W.3d 711 (Tex. App.-Dallas 2004, no pet.) ...................................... 2, 13

Kansas City S. Ry. Co. v. Oney, 380 S.W.3d 795 (Tex. App.-Houston [14th Dist.] 2012, no pet.) ..................... 4

Perry v. Commerce Loan Co., 383 U.S. 392, 86 S. Ct. 852, 15 L. Ed. 2d 827 (1966) ....................................... 14

PNS Stores, Inc. v. Rivera, 379 S.W.3d 267 (Tex. 2012) ................................................................................ 5

Ryals v. Ogden, No. 14-07-01008-CV, 2009 Tex. App. LEXIS 6634 (Tex. App.-

Houston [14th Dist.] Aug. 25, 2009, no pet.) ....................................................... 7

Sharp v. House ofLloyd, Inc., 815 S.W.2d 245 (Tex. 1991) .............................................................................. 14

Sigmar v. Anderson, 212 S.W.3d 789 (Tex. App.-Austin 2006, no pet.) ........................................... 5

Stanley v. Riney, 970 S.W.2d 636 (Tex. App.--Tyler 1998, no pet.) ............................................ 6-7

State Farm Lloyds v. C.M. W., 53 S.W.3d 877 (Tex. App.-Dallas 2001, pet. denied) ....................................... 6

Transamerica Occidental Life Ins. Co. v. Rapid Settlements, Ltd., 284 S.W.3d 385 (Tex. App. -Houston [1st Dist.] 2008, no pet.) ................ 3, 13

Wilson v. Dvorak, 228 S.W.3d 228 (Tex. App.- San Antonio 2007, pet. denied) .. ....................... 13

STATUTES, RULES & REGULATIONS Tex. R. App. P. 41.2(c) .............................................................................................. 4 Tex. Civ. Prac. & Rem. Code § 141.002(18) ..................................................... 11-12 Tex. Civ. Prac. & Rem. Code§ 141.005(1) ....................................................... 10-11 Tex. Civ. Prac. & Rem. Code§ 141.005(4) ...................................................... 11 , 13 Tex. Civ. Prac. & Rem. Code§ 141.006(b)(5) ......................................................... 9 Tex. Civ. Prac. & Rem. Code§ 141.007(f) ......................................................... 3, 10

Texas Structured Settlement Protection Act, Tex. Civ. Prac. & Rem. Code§ 141.001 et seq . ..................................... ....................................................... passim

- lll -

RECORD REFERENCES

Record citations appearing as "CR" refer to the Original Clerk's Record filed in the First Court of Appeals on August 12, 2014.

Record citations appearing as "1st Supp. CR" refer to the 1st Supplemental Clerk's Record filed in the First Court of Appeals on October 27, 2014.

Record citations appearing as "2nd Supp. CR" refer to a second Supplemental Clerk's Record that was filed in the First Court of Appeals on December 12, 2014. 1

Record citations appearing as "RR" refer to the Reporter's Record filed in the First Court of Appeals on December 10, 2013.

1 This second Supplemental Clerk's Record, when filed, was identified as a "1st Supplemental Clerk' s Record. " However, it is actually the second supplemental record, the first one having been filed on October 27, 2014, and therefore, for clarity of citation reference, it is referred to herein as "2nd Supp. CR."

- IV -

MAY IT PLEASE THE COURT:

Based on the motion for rehearing or motion for reconsideration en bane filed by plaintiff-appellant RSL-3B-IL, Ltd. ("RSL"), it is easy to get distracted from who brought this case and what it is actually about: RSL brought a breach of contract claim against appellees based on an order for the transfer of structured settlement payments. 2 RSL did not sue to enforce a court order, and this case was not about a collateral attack. This was a breach ofcontract case, but without a contract or a breach.

While RSL has taken issue with this Court's decision and the outcome of its appeal, RSL has only itself to blame in creating this situation. RSL, through its purported assignee Rapid Settlements, Ltd. ("Rapid"), obtained a court order (the "Rapid Order") directing the Prudential Defendants to remit certain portions of monthly periodic payments to RSL, even though the Prudential Defendants were already required by a previous court order to deliver and make payable the entirety of each periodic payment to a different factoring company, Settlement Capital Corporation ("SCC"). The Prudential Defendants attempted to resolve the

2 Appellees here are The Prudential Insurance Company of America (" Prudential") and Prudential Structured Settlement Company f/k/a Prudential Property and Casualty Insurance Company of Holmdel, New Jersey (" PSSC") (collectively, the "Prudential Defendants").

conflicting orders through a stipulation and amended order. RSL, however, failed to satisfy its obligations or cooperate to resolve the matter.

Instead, RSL instituted a new proceeding, asserting a breach of contract claim against the Prudential Defendants. The Prudential Defendants interpleaded the funds at issue, disclaiming any interest in them. After a trial on the merits, the trial court rendered judgment for the Prudential Defendants; the Prudential Defendants were awarded certain attorneys' fees; and RSL could claim the interpleaded funds. Yet still, despite the monies being on hold with the registry of the court and available to RSL, RSL appealed.

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RSL-3B-IL, Ltd. v. the Prudential Insurance Company of America and Prudential Structured Settlement Company F/K/A Prudential Property and Casualty Insurance Company of Holmdel, New Jersey, (Tex. Ct. App. 2015).

RSL-3B-IL, Ltd. v. the Prudential Insurance Company of America and Prudential Structured Settlement Company F/K/A Prudential Property and Casualty Insurance Company of Holmdel, New Jersey (RSL-3B-IL, Ltd. v. the Prudential Insurance Company of America and Prudential Structured Settlement Company F/K/A Prudential Property and Casualty Insurance Company of Holmdel, New Jersey) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Perry v. Commerce Loan Co.
383 U.S. 392 (Supreme Court, 1966)
Brookshire Brothers, Inc. v. Smith
176 S.W.3d 30 (Court of Appeals of Texas, 2005)
Stanley v. Riney
970 S.W.2d 636 (Court of Appeals of Texas, 1998)
Transamerica Occidental Life Insurance Co. v. Rapid Settlements, Ltd.
284 S.W.3d 385 (Court of Appeals of Texas, 2008)
Johnson v. Structured Asset Services, LLC
148 S.W.3d 711 (Court of Appeals of Texas, 2004)
State Farm Lloyds v. C.M.W.
53 S.W.3d 877 (Court of Appeals of Texas, 2001)
Sigmar v. Anderson
212 S.W.3d 789 (Court of Appeals of Texas, 2006)
Harris v. Balderas
27 S.W.3d 71 (Court of Appeals of Texas, 2000)
Wilson v. Dvorak
228 S.W.3d 228 (Court of Appeals of Texas, 2007)
Sharp v. House of Lloyd, Inc.
815 S.W.2d 245 (Texas Supreme Court, 1991)