Structured settlement sale upheld

The 3rd US Circuit Court of Appeals has upheld the sale by a New Jersey man, Victor Jacquette, of his structured settlement payments, despite a prohibiting clause in the agreement. This is because, although the contract prohibited assigning the settlement to someone else, it did not specifically use language voiding the contract in case of a sale, nor that Continental would not recognise such a sale. The court did not address whether Jacquette broke the contract, but ruled that had he done so, Continental could collect damages.