Settlement Funding, LLC v. Rapid Settlements

Peachtree filed suit against Rapid for tortious interference with its contracts. Peachtree and Rapid are two companies in the business of identifying individuals who are the beneficiaries of structured settlements, which provide a stream of payments, much like an annuity, usually over an extended period of years; once an annuitant is identified, the companies offer to purchase the stream of payments in return for a lump sum. The district court dismissed the claims and both parties appealed. The court held that plaintiffs failed to meet their burden of establishing either federal question or federal diversity jurisdiction. Therefore, federal courts have no subject matter jurisdiction over this case. The court vacated and remanded with directions to remand the case to state court. View "Settlement Funding, LLC v. Rapid Settlements" on Justia Law