How can constructive receipt affect structured settlements?
A structured settlement cannot be used if the settlement is complete or the judgment is final. As a general rule, a plaintiff cannot be in constructive receipt of the defendant’s lump-sum offer if the plaintiff has not agreed to provide a release. The requirement that the plaintiff must agree to release the claim is a “substantial limitation” that keeps the constructive receipt doctrine from operating. Once the plaintiff agrees to provide a release or drop an appeal, the plaintiff is in constructive receipt of the money offered, assuming there are no other existing limitations on its receipt and that it is collectible. Until a settlement is final, the parties can continue to negotiate. Mere negotiations do not trigger the constructive receipt doctrine, allowing a structured settlement to be used. A plaintiff can reject an amount offered and counter with a higher amount, conditioned on agreeing to a structured settlement. If the defendant agrees to the higher amount it will spend, and d
