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Shaffer v. Liberty Life Assurance Co.

Case Date: 03/14/2001
Court: 1st District Appellate
Docket No: 1-00-1111 Rel

THIRD DIVISION
March 14, 2001

 

 

 

No. 1--00--1111

In re DENNIS SHAFFER,

          Petitioner-Appellant.

                    v.

LIBERTY LIFE ASSURANCE COMPANY OF
BOSTON and KEYPORT LIFE INSURANCE
COMPANY,

          Intervenors-Appellees.

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)		 Appeal from the
Circuit Court of
Cook County.





Honorable
Henry A. Budzinski,
Judge Presiding.

 

JUSTICE BURKE delivered the opinion of the court:

Petitioner Dennis Shaffer appeals from orders of the circuitcourt granting intervenors Liberty Life Assurance Company of Boston's (LibertyLife) and Keyport Life Insurance Company's (Keyport) motion to reconsider thecourt's previous order granting petitioner's petition to allow assignment offuture periodic payments and denying petitioner's petition to allow theassignment, and denying petitioner's motion to reconsider. On appeal, petitionercontends that the trial court erred in denying his petition to allow assignment.For the reasons set forth below, we affirm.

STATEMENT OF FACTS

On October 14, 1998, petitioner entered into a settlement ofhis personal injury lawsuit against Meccon Industries (petitioner's employer),General Mills, Inc., and their insurance carriers. Pursuant to the settlementagreement, petitioner agreed to accept a lump sum payment of $60,000 from Mecconand $110,000 from General Mills. Petitioner was also to receive future periodicpayments under a structured settlement arrangement from General Mills, throughits insurance carrier Liberty Mutual Insurance Company (Liberty Mutual), of$41,600 on September 30, 2001, $20,000 on September 30, 2003, and $20,000 onSeptember 30, 2008. Paragraph 3 of the settlement agreement contained anantiassignment provision that stated:

"Payee's Rights to Payments

Plaintiff acknowledges that the Periodic Payments cannot be accelerated, deferred, increased or decreased by the Plaintiff, nor shall the Plaintiff have the power to sell, mortgage, encumber, or anticipate the Periodic Payments, or any part thereof, by assignment or otherwise."

On September 24, 1998, pursuant to the settlement agreement,Liberty Mutual executed a qualified assignment of its liability within themeaning of section 130 of the Internal Revenue Code of 1986 (Revenue Code) (26U.S.C.