Michigan Laws 600.6309 – Plan for structured payment of future damages; determination as to future collectibility of annuity contract or qualified assignment; owner of annuity contract; making qualified assignment; effec
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(1) Subject to section 6307, if the plaintiff and the defendant agree to a plan for the structured payment of future damages within 35 days of the judgment, the court shall order that structured payments shall be made pursuant to that plan.
(2) If the plaintiff and defendant do not agree to a plan for structured payments as prescribed by subsection (1), the court shall order the structured payment of future damages pursuant to a plan submitted to the court by the plaintiff or defendant.
Terms Used In Michigan Laws 600.6309
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Contract: A legal written agreement that becomes binding when signed.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
- Future damages: means damages arising from personal injury which the trier of fact finds will accrue after the damage findings are made and includes damages for medical treatment, care and custody, loss of earnings, loss of earning capacity, loss of bodily function, and pain and suffering. See Michigan Laws 600.6301
- judgment: as used in this act , includes decree. See Michigan Laws 600.112
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Plaintiff: The person who files the complaint in a civil lawsuit.
(3) Upon motion by the plaintiff, the court shall make a determination as to the future collectibility of the annuity contract or a qualified assignment made pursuant to subsection (4).
(4) The defendant or the defendant’s liability insurance carrier who satisfies a portion of the judgment by the purchase of an annuity contract as provided by this section or section 6307 shall be the owner of that annuity contract, except that the defendant or the defendant’s insurance carrier may make a qualified assignment, within the meaning of section 130(c) of the internal revenue code of 1954, as amended, of the obligation to the plaintiff.
(5) If a qualified assignment is made pursuant to subsection (4), the defendant’s liability insurance carrier shall be relieved of all obligation to the plaintiff.
(6) Structured payments guaranteed by an annuity contract shall be made to the plaintiff or the plaintiff’s estate, or in a wrongful death action, to the person or persons entitled to the damages or that person’s or persons’ estate, as applicable.