Structured Settlement History & Case Examples
Structured settlements grew in popularity after federal legislation in the 1980s encouraged their use to provide extended, tax-free financing for people who receive money from lawsuits. Examples of cases that may result in structured settlements include personal injury, workers’ compensation, medical malpractice and wrongful death.
Sell Your Annuity or Structured Settlement Payments for Cash!
Need money now? Paying off a debt? Starting a new business? Selling your annuity or structured settlement payments may be the solution for you.
Or Call us at 866-528-4784
Annuity.org partners with outside experts to ensure we are providing accurate financial content.
These reviewers are industry leaders and professional writers who regularly contribute to reputable publications such as the Wall Street Journal and The New York Times.
Our expert reviewers review our articles and recommend changes to ensure we are upholding our high standards for accuracy and professionalism.
Our expert reviewers hold advanced degrees and certifications and have years of experience with personal finances, retirement planning and investments.
APA Byerly, C. J. (2021, October 22). Structured Settlement History & Case Examples. Annuity.org. Retrieved January 15, 2022, from https://www.annuity.org/structured-settlements/history-and-case-examples/
MLA Byerly, Catherine J. "Structured Settlement History & Case Examples." Annuity.org, 22 Oct 2021, https://www.annuity.org/structured-settlements/history-and-case-examples/.
Chicago Byerly, Catherine J. "Structured Settlement History & Case Examples." Annuity.org. Last modified October 22, 2021. https://www.annuity.org/structured-settlements/history-and-case-examples/.
Why You Can Trust Annuity.org
Our Partnerships, Vision and Goals
We partner with CBC Settlement Funding, a market leader with over 15 years of experience in the settlement purchasing space. Our relationship with CBC allows us to facilitate the purchase of annuities and structured settlements from consumers who are looking to get a lump sum of cash immediately for their stream of monthly payments. When we produce legitimate inquiries, we get compensated, in turn, making Annuity.org stronger for our audience. Readers are in no way obligated to use our partners’ services to access Annuity.org resources for free.
CBC and Annuity.org share a common goal of educating consumers and helping them make the best possible decision with their money. CBC is a Better Business Bureau-accredited company with an A+ rating and a member of the National Association of Settlement Purchasers (NASP), a national trade association that promotes fair, competitive and transparent standards across the secondary market. Additionally, Annuity.org operates independently of its partners and has complete editorial control over the information we publish.
Our vision is to provide users with the highest quality information possible about their financial options and empower them to make informed decisions based on their unique needs.
The History of Structured Settlements
Structured settlements were first popularized in Canada during the 1960s as a way of managing payouts from settlements involving thalidomide. German pharmaceutical company Grünenthal manufactured the drug to ease morning sickness for pregnant women, but the sedative caused severe, life-threatening birth defects in thousands of children.
Thalidomide survivors require specialized health care and help with activities of daily living, and it quickly became clear that lump-sum settlements were not ideal for covering the cost of these lifelong needs.
Although structured settlements for thalidomide claimants originated in Canada, similar cases were later filed in the United States, which popularized the use of structured settlements in medical malpractice disputes.
Recognizing that personal injury victims could also benefit from this type of settlement, the federal government passed the Periodic Payment Settlement Act (PPSA) in 1983 to promote the use of structured settlements as a means of providing long-term, tax-free financial security to people seriously injured in accidents and their families.
Today, structured settlements are awarded in a variety of cases, and are common for lawsuits settled out of court. Most claimants get to choose between accepting periodic payments, taking a single lump-sum payout, or some combination of the two.
However, in cases that involve minor children or persons found to be incompetent, courts typically require structured settlements in order to ensure the award money is disbursed and spent appropriately.
Structured Settlement Case Examples
Structured settlements can be used to settle any kind of civil lawsuit, but they are more common for particular legal issues.
Case 1
A 46-year-old woman suffers back and head trauma after an ambulance rear-ends her car.
Personal Injury: This area of law covers much more than just physical accidents. Long-term illnesses and even emotional and reputational harm can lead to a personal injury suit.
Case 2
A 35-year-old store clerk slips and falls on a snowy sidewalk outside of a major department store.
Workers’ Compensation: State laws require many employers in the United States to carry insurance specifically for work-related injuries or illnesses that employees may suffer.
Case 3
Patient was misdiagnosed with a chronic illness and was negligently prescribed medication that caused severe liver damage.
Medical Malpractice: A special type of civil lawsuit may be filed when a medical professional harms a patient through an incorrect diagnosis, a flawed treatment or a failure in follow-up care.
Case 4
A couple is killed in an accident aboard a train speeding in inclement weather.
Wrongful Death: When someone dies due to another’s negligence, the victim’s surviving loved ones may seek compensation for pain and suffering, funeral expenses and lost household income.
