June 27, 2011

Florida Court Rules That Defendant Cannot Be Forced to Pay Settlement Proceeds Into QSF

A Florida state court has ruled that where the plaintiff and a defendant reached a settlement agreement in resolution of the plaintiff’s claims, but the defendant did not agree to pay the agreed-upon settlement proceeds to a Qualified Settlement Fund (“QSF”) created pursuant to Section 468B of the Internal Revenue Code and related treasury regulations, the court would not force the defendant or its insurer to do so. In Martinez v. Tampa Bay Academy, et al., Case No. 06-CA-007546 (Hillsborough Cir. Ct.), Judge Sam Pendino found that, under such circumstances, an enforceable settlement had been reached for the defendant or its insurer to pay the agreed-upon settlement proceeds to the plaintiff or the trust account of the plaintiff’s counsel – but not to a QSF.

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