HOUSTON--(BUSINESS WIRE)--A Texas appeals court dissolved and reversed a temporary injunction against structured settlement purchasing company RSL Funding LLC that had prevented RSL from competing with Peachtree Settlement Funding's clients throughout the United States.
The injunction was issued in a dispute in which Peachtree Settlement Funding “accused” RSL of offering Peachtree's customers more money than Peachtree was willing to offer for their annuities. RSL readily admitted to offering customers more money for their annuities than J.G. Wentworth affiliate Peachtree was offering. “We plead guilty as charged,” exclaimed RSL senior account executive Rudy Ramirez. “RSL has a long history of welcoming competition by offering clients highly competitive rates. RSL stands in contrast to Peachtree which discourages their clients from seeking competitive offers. I can make a great living just treating customers fairly.”
Peachtree was able to convince a Houston trial judge that RSL’s offering a customer a better deal violated Texas law. At Peachtree’s request, the state court judge granted a nationwide injunction against RSL, preventing it from offering a better deal to sellers of annuities. The Texas appellate court disagreed with the former trial judge and reversed the trial court in a recent opinion noting that Peachtree’s actions were “an unreasonable restraint on trade” 1 and anti-competitive. The companies compete in the secondary market for structured settlement payment rights by buying future income streams from settlement recipients in exchange for a lump sum.
“As written, RSL Funding may [not] act with any of Peachtree’s clients, anywhere in the United States, even if a Peachtree client contacts RSL Funding seeking a better offer than that offered by Peachtree,” the appeals court said. “This language results in an unreasonable restraint on trade.” 1
RSL Funding is recognized nationally for offering structured settlement recipients more money for future settlement payments. RSL Funding actively pursues owners of structured settlement payments to make competitive offers, leaving the customers and the courts to ultimately decide whether it is in the payees' best interest to receive more money than less. The Texas appellate court upheld the annuity recipient's right to continue seeking competitive offers. And the Texas appellate court upheld the right of RSL Funding to make competitive offers to prospective sellers of structured settlements.
According to Stewart Feldman, CEO of RSL Funding, LLC, "Sellers of structured settlements, beware! Peachtree has been claiming that it has an enforceable contract when in fact it does not. Peachtree long has used this threat to underpay sellers of structured settlements for their future payments. Especially after Peachtree Settlement Funding was acquired by J.G. Wentworth, these companies have attempted to offer annuity sellers even less value for their future payments. Their poor conduct is well recognized by the courts.”
Paul McHugh, Vice President of Sales & Marketing at RSL, further commented: “Usually whenever we receive a call from a Peachtree customer, we soon learn that they were underpaid. We explain to the customer how much money they left on the table by not seeking a competitive offer.”
RSL Funding, LLC, is an industry leader in funding structured settlements. The Houston-based company has refined the process of getting cash to clients quickly and efficiently. Clients who wish to cash out or sell structured settlements, annuities, lotteries and other long-term receivables – either in whole or in part – find the company knowledgeable and experienced. RSL specializes in the purchase of annuities, which are payable over a term-certain period, and those which are payable for life beyond any term-certain period.
RSL Funding’s affiliated legal department allows the company to expedite its purchase of clients’ settlements, and RSL’s ability to get clients’ immediate cash for collateral gives this leading company its well-earned reputation for performance.
Footnote:
1 The full text of the 14th Court of Appeals opinion can be found at http://www.leagle.com/xmlResult.aspx?page=11&xmldoc=In%20TXCO%2020120110491.xml&docbase=CSLWAR3-2007-CURR&SizeDisp=7. See also the full text of the opinion at Rapid Settlements, Ltd v. Settlement Funding, LLC, 2012 Tex. App. LEXIS 156 (Tex. App. Houston 14th Dist. Jan. 10, 2012).