Green v. Safeco Life Insurance Co., No. 5-99-0489

5th District, 24 March 2000

JUSTICE WELCH delivered the opinion of the court:

The issue presented to this court is whether the circuit court of Hamilton County erred in approving a request by petitioner,Christopher Green, pursuant to section 155.34 of the Illinois Insurance Code (215 ILCS 5/155.34(b) (West 1998)), to assignsome of his structured settlement payments to Stone Street Capital, Inc. (Stone Street), in exchange for a lump-sumpayment. Respondents, Safeco Life Insurance Company and Safeco Assigned Benefits Service Company (SABSCO),challenge the approval, arguing petitioner's settlement agreement clearly and unambiguously prohibits petitioner frommaking such assignment. For the reasons set forth below, we reverse the judgment of the circuit court of Hamilton County.

The facts in this case are as follows. On November 19, 1993, petitioner's mother was killed in an automobile accident. Atthe time, petitioner was 12 years old. Petitioner, through the guardian of his estate, settled all claims (i.e., wrongful death,general damages) with Redland Insurance Company (Redland). The settlement agreement with Redland provides that Greenreceive five annual payments in the amount of $8,000 commencing on December 5, 1998, a lump-sum payment of $8,900on December 5, 2002, a lump-sum payment of $10,800 on December 5, 2005, and a lump-sum payment of $15,120 onDecember 5, 2010. The settlement agreement contains an antiassignment clause, which provides that these periodicpayments "cannot be accelerated, deferred, increased[,] or decreased by [petitioner] or any payee; nor shall [petitioner] orany payee have the power to sell, mortgage, pledge, encumber[,] or anticipate the Periodic Payments or any part thereof, byassignment or otherwise." The settlement agreement further provides that, within the meaning of section 130(c) of theInternal Revenue Code of 1986 (Internal Revenue Code) (26 U.S.C.