law-consideration-in-contract-context | no consideration | failure of consideration | inadequate consideration |
transfer without consideration | formation of contract | void and voidable contracts
CONSIDERATION - CONTRACTED FOR EXCHANGE
The SSPA defines "transfer" as "any sale, assignment, pledge, hypothecation, or other alienation or
encumbrance of structured settlement payment rights made by a payee for consideration." Tex. Civ. Prac. &
Rem. Code Ann. § 141.002(18). Based on this definition, Rapid asserts that a transfer must be voluntary,
whereas the transfer of structured settlement payments in this case was involuntary because the arbitrator
awarded the payments as damages. However, Green did voluntarily agree to sell his structured settlement
payments for consideration. By signing the arbitrator's award, Green agreed to garnishment of 275
structured settlement payments in exchange for $9000 in cash. See Symetra, 2009 WL 1057339, at *4
(citing Harris v. Balderas, 27 S.W.3d 71, 80 (Tex. App.--San Antonio 2000, pet. denied) (holding
consideration is fundamental element of settlement agreement)). "The fact that Rapid has obtained
such a transfer by an arbitration award purporting to award 'lost profits' or 'damages' for a breach of the
agreement does not change the fact that it is a transfer under the [SSPA]." Symetra, 599 F.Supp.2d at 830;
see also Symetra, 2009 WL 1057339, at *4; Rapid Settlements, 234 S.W.3d at 800-01. Rapid Settlements, Ltd
v. Green (Tex.App.- Houston [1st Dist.] Jun. 18, 2009)(Op. By Alcala) (transfer of structured settlement rights, grounds for
vacature of arbitration award entered under the Federal Arbitration Act (FAA), applicability of FAA, does the FAA preempt the
TAA?, nonexistence of arbitration agreement between the parties, when are nonsignatories bound to by arbitration
agreement? nonparties to the agreement, nonsignatories)(arbitrator exceeded his authority in issuing the award. See 9
U.S.C.S. § 10(a)(4).
AFFIRM TC JUDGMENT DENYING CONFIRMATION OF ARB AWARD: Opinion by Justice Alcala
Before Justices Jennings, Alcala and Higley
01-08-00109-CV Rapid Settlements, Ltd. v. Jerry M. Green
Appeal from County Civil Court at Law No 3 of Harris County
Trial Court Judge: Hon. Linda Storey
Trojacek v. Estate of Kveton (Tex.App.- Houston [14th Dist.] Apr. 7, 2009)(Sullivan)
(real estate dispute, constructive trust, cancellation of deeds, breach of fiduciary duty,
lis pendens, property transfer in expectation of marriage, lack of consideration)
AFFIRMED IN PART DISMISSED IN PART: Opinion by Justice Sullivan
Before Justices Brock Yates, Guzman and Sullivan)
14-07-00911-CV Theresa Elizabeth Trojacek and Ronald David Ludwig v. Estate of Magnolia Kveton
Appeal from County Court at Law of Austin County
Foote v. Tate (Tex.App. - Houston [1st Dist.] Jan. 31, 2008)(Nuchia)
(real estate law, contract construction, consideration)
AFFIRM TC JUDGMENT: Opinion by Justice Nuchia
Before Justices Nuchia, Hanks and Higley
01-06-00956-CV Kennitra M. Foote v. Monica J. Tate
Appeal from 270th District Court of Harris County (Judge Brent Gamble)