April 20, 2011

Virginia Court Holds That Longshore Act Prohibits Transfer of Structured Settlement Payment Rights

A Virginia state court has ruled that the anti-assignment provision of the Longshore and Harbor Workers’ Compensation Act, 33 U.S.C. § 901 et seq. (the “Longshore Act”) prohibits a transfer of structured settlement payment rights arising from a claim under the Longshore Act. In In re Jeffrey Butts, No. CL11-240 (Portsmouth Cir. Ct.), Judge Dean Sword held that the Longshore Act therefore compelled the denial of a petition for transfer of structured settlement payment rights filed under the Virginia Structured Settlement Protection Act, Va. Code Ann. § 59.1-475 et seq. (the “Virginia Act”).

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