Johnson v. First Colony Life Insurance
Opinion
Opinion
Snyder, J.
ORDER RE: CROSS-MOTIONS FOR SUMMARY JUDGMENT
On May 14, 1998, plaintiffs filed a complaint in Los Angeles Superior Court, seeking declaratory and injunctive relief against defendant First Colony Life Insurance Company (“First Colony”). First Colony timely removed the matter to this Court on the basis of diversity of citizenship. On October 1, 1998, plaintiffs filed their first amended complaint, adding defendant Jamestown Life Insurance Company (“Jamestown”). The parties bring the instant cross-motions for summary judgment on the issue of the enforceability of a nonassignability clause in a structured settlement contract. It appears that resolution of this issue will be dispositive as to the entire case.
I. Factual Background
The material facts in this case do not appear to be in dispute. In September 1992, plaintiffs entered into a settlement agreement with Rockwell International and Travelers Indemnity (“Settlement Agreement”), in settlement of a personal injury claim against Rockwell. The settlement is in the form of a “structured settlement,” which provides periodic payments to plaintiffs in specified amounts through at least the year 2012.