Can the Defense Get Away With Fraud?
Settlement Professionals Inc. Fast Facts 5, 2001
Almost!
While jurisdictions differ on what constitutes arms-length settlement negotiations, a recently-decided New York case has captured the attention of the structured settlement industry.
In 1992, the plaintiffs, Alexander Lyons and his father, commenced a lawsuit against, among others, Medical Malpractice Insurance Association.
The plaintiffs alleged fraud, intentional misrepresentation and negligent misrepresentation. The case underlying the lawsuit against MMIA goes back to a 1987 medical negligence claim settlement.
In the course of negotiations leading up to the original settlement, MMIA presented plaintiffs with a structured settlement package that provided the infant plaintiff $3,000 per month for life. MMIA specifically represented that the present value of the settlement package was worth $940,180, when, in reality, it only cost MMIA $410,000.
Filed under: Blog, structured settlements
