California Residents

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California Residents

By AFG Newswire Nov.30, 2014 11:53 a.m. Block 15.4  Article 2.3 Transfers of Structured Settlement Payment Rights

Part 11 California Residents:  What the Transfer Company Can’t Make You Do

 

They Can’t Change California as Your Court Venue if You’re from California, and the Original Incident Happened in a Different State, and/or Other Involved Parties are from a Different State.

 

  • 10138(a)(10) “If the payee is domiciled in California at the time that the transfer agreement is signed by the payee, any choice-of-law provision that provides for controlling law to be other than California law in any action arising under the contract.”

 

“Choice-of-law”, or “conflict-of-law” means that body of law by which the court in which the action is maintained determines or chooses which law to apply where a diversity [people from different states] exists between the applicable law of that court’s state [the forum or host state] and the applicable law of anther jurisdiction interested in the controversy.

 

The conflict of which state law is to be applied, is not for the transfer company to decide.  This “conflict” is settled by §10138(a)(10) clearly stating that if the payee has residency in California at the time of signing the transfer agreement, all California laws have power over the transfer.

 

There was a time, before §10138(a)(10) existed that some transfer companies exercised some muscle and decided for the California payee where their case was going to be heard.

 

This won’t happen anymore because of §10138(a)(10).  If you have any questions about jurisdiction, contact an independent professional adviser today.