In re DENNIS SHAFFER, Petitioner-Appellant. v. LIBERTY LIFE ASSURANCE COMPANY OF BOSTON and KEYPORT LIFE INSURANCE COMPANY, Intervenors-Appellees., 319 Ill. App. 3d 1048

Summary

Petitioner entered into a structured tort settlement whereby petitioner was to receive future payments and was prohibited from assigning his settlement award. Petitioner sought to assign the settlement to a finance company for an immediate lump sum. The trial court ultimately found that the nonassignment clause was valid. Affirming the trial court, the reviewing court found that petitioner had neither the power nor the right to assign future payments. There was no public policy invalidating nonassignment provisions. The nonassignment provision was a bargained-for provision intended to benefit both parties, and was therefore not an adhesive contract. Under 215 Ill. Comp. Stat. 5/155.34(b), the trial court had discretion to approve an assignment of settlement rights only where the petitioner had the right to assign under the settlement agreement.