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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

FIDELITY AND GUARANTY LIFE INSURANCE COMPANY Plaintiff, v. LUCILLE HARROD, et al. Defendants -------------------------------------------SETTLEMENT FUNDING, LLC d/b/a PEACHTREE SETTLEMENT FUNDING, Cross-complainant v. LUCILLE HARROD, and FIDELITY AND GUARANTY ASSIGNMENT CORPORATION and RAPID SETTLEMENTS, LTD. Cross-Defendants

: : : : : : : : : Civil No. CCB-05-2732 : : : : : : : : : : : : : : : : : : : : : : : :

MEMORANDUM Now pending before the court are motions by Settlement Funding, LLC, d/b/a Peachtree

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Settlement Funding ("Peachtree") and Fidelity and Guaranty Life Insurance Company ("F & G Life") for attorney's fees, pursuant to an order of this court imposing sanctions against Rapid Settlements, Ltd. ("Rapid"). Also pending is Rapid's motion to alter or amend the court's September 27, 2007 order imposing such sanctions. The parties have fully briefed the motions and no hearing is necessary. See Local Rule 105.6. For the reasons articulated below, Rapid's motion to alter or amend judgment will be denied, and sanctions will be awarded against Rapid, to Peachtree in the amount of $15,719.59 and to F & G Life in the amount of $8,837.80. Rapid's counsel will be ordered to show cause as to why counsel should not partially bear the cost of the sanctions.

BACKGROUND Under the terms of an unrelated lawsuit, Lucille Harrod ("Mrs. Harrod") became entitled to receive periodic payments under the terms of a structured settlement. The payments, in the amount of $512.05 a month, were to be paid by Fidelity and Guaranty Assignment Corporation ("F & G Assignment"). To fulfill this obligation, F & G Assignment purchased an annuity from F & G Life. F & G Life agreed to make the settlement payments directly to Mrs. Harrod. In 2003, Mrs. Harrod entered into an agreement with Peachtree to sell and assign her right to the F & G Life payments. On June 2 of that year, Peachtree and Mrs. Harrod entered into the Absolute Assignment and Article 9 Security Agreement ("First Peachtree Agreement"), under which Mrs. Harrod assigned 120 of the monthly settlement payments, beginning on September 1, 2003 and ending after the payment on August 1, 2013. Under Florida Statute

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Maryland Law