U.S. Sixth Cir. Ct. of Appeals denies state court jurisdiction over structured FTCA settlement per sovereign immunity

Sixth Circuit U.S. Court of Appeals  has held the doctrine of federal sovereign immunity deprives a state court of jurisdiction to approve a transfer of structured-settlement payment rights where the U.S. nominally owns, but has no beneficial interest in, the annuity funding the payments.

TransAmerica v. USA, et al.
Western District of Kentucky at Louisville

COOK, Circuit Judge. Settlement Capital Corporation (“Settlement Capital”) appeals a district court’s order granting summary judgment in favor of the United States on the basis of federal sovereign immunity. We affirm.

This case turns on whether the doctrine of federal sovereign immunity deprives a state court of jurisdiction to approve a transfer of structured-settlement payment rights where the United States nominally owns—but has no beneficial interest in—the annuity funding these payments. If federal sovereign immunity applies, summary judgment should be granted in favor of the government. Cf. Akers v. Alvey, 338 F.3d 491, 497 (6th Cir. 2003).