Structured Settlement Law and Legal Definition
Structured settlement is an agreement in a lawsuit by which specific payments are made over a period of time. Under a structured settlement, a victim will receive compensation for life time. Structured settlement protects a victim from economic loss and hardship. This agreement is much favored by defendants in lawsuits. The Transfer Act defines structured settlement as an arrangement for periodic payments of damages for injury to a person that is established by a settlement or a court judgment in resolution of a tort claim.
In re Stratcap Invs., Inc., 154 Ohio App. 3d 89, 92 (Ohio Ct. App. 2003), the court observed that a person must file an application for approval in advance of a transfer of structured settlement payment rights in the probate division of the court of common pleas of the county in which the payee, the structured settlement obligor, or the annuity issuer resides.