Coronal Capital is a company that buys structured annuity payments at a discounted price and then sells

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Coronal Capital is a company that buys structured annuity payments at a discounted price and then sells them for a lump sum. On November 2011, Robert and Linda Wall signed purchase agreement for a structured annuity from the Altium Group, LLC, which acted as an intermediary between Coronal Capital and prospective purchasers. 

After the Walls signed the agreement, Coronal Capital purchased Kenneth Stevens’s structured settlement payments and sold the right, title, and interest payments to Altium Group, who subsequently began servicing the agreement with the Walls. The Walls paid $152,833.37 to receive 60 payments of $3,000 with 3 percent annual increase in payment. During the transfer between Coronal Capital and Altium Group, Coronal Capital petitioned and gained approval from a Florida court to transfer the settlement payments to the Walls.

However, two years after the Florida court approved the transfer, it vacated its judgement in the original case involving Stevens’s annuity agreement by ordering the settlement be paid to Stevens’s lawyer and not to Stevens himself, thus rendering the sale of the annuity from Corona Capital to the Walls through Altium null. 

The Walls sued Corona Capital and Altium Group for breach of transfer warranties under the UCC, breach of the purchase agreement. The court rejected the Walls’ transfer warranty claim. Give two reasons why the plaintiffs’ transfer warranty claim fails.

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Dynamic Business Law

ISBN: 9781260247893

5th Edition

Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs

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