Law Times

PAGE 16 BRIEF: STRUCTURED SETTLEMENTS November 26, 2012 • Law Times Brokers raising game with creative options Continued from page 15 Inc., says he'll take all the help he can get. "People' short term. They tend to re- member the days of five- and 10-per-cent interest rates and seem to think that rates are sud- denly going to take a leap up just around the corner. I don't see that happening, s thinking is very were climbing in the early 1980s, even then it was a fairly hard sell for structures because "That said, back when rates " Fenik says. 10 per cent wasn't good enough. They wanted 12 or 15 per cent." In Hamilton, Ont., Barry Chobotar, managing partner at Henderson Structured Settle- ments LP, says a skeptical public has spurred brokers to raise their game and come up with more creative options for custom- ers who think they can squeeze more out of their settlement in the long run. That could involve structuring only part of the set- tlement and taking the rest in cash or structuring the money on a shorter time frame with a lump-sum payout at its conclu- sion. "Structures are very flexible in how they're put together," Chobotar says. "We have to try to find the nuanced solutions and create something that' s no the claimant. When interest rates were higher, people would more oſten than not just select the lifetime plan, but that' longer the case." s amenable to Your Partners in Service® Since 1981 1.800.263.8537 www.henderson.ca to get the message out to plain- tiffs because their lawyers aren't always up to speed with new developments in the structures field. "I get lawyers saying, 'My cli- ent doesn't want a structure,'" Baxter says. "But it's important en cases in the last year where counsel overlooked the right to structure as a term of settle- ment, which has in the past led to lawyers reporting themselves to their [errors-and-omissions] carrier, The problem for brokers is that it's not always easy for them consent to a structure, and Fe- nik says that following particu- larly fractious negotiations, it' Defendant insurers must " Fenik says. not unusual for insurers to de- cline consent if it' in the minutes of settlement. "It' to show them their options. Put us in front of the claimants to let them have the choice and see what we can do for them." endersonLT_Sep10_12.indd 1 12-09-05 3:21 PM too frequently," says Fenik, who s s not reflected s something that happens adds that ensuring insertion of a right-to-structure clause in the minutes of settlement is a major reason he likes to be present at mediation and settle- ment conferences. look the structure option could even run the risk of a malprac- tice lawsuit, depending on the wishes of their client. "I've seen at least half a doz- Fenik says lawyers who over- opportunity for brokers to ex- plain structures to plaintiffs who may not have heard much more than a passing reference from their lawyer, according to Baxter. "I sometimes like to sit with the claimants, have some face time with them, and try to ex- plain what these numbers actu- ally mean to them," she says. "If there' ment, it may also help stretch that dollar where claimants need it to. It's a settle- ment tool to bridge the gap." Chobotar attends mediations Mediations are also a great s not a lot of move- perhaps and settlement conferences about twice a week and says both sides appreciate the opportunity to get up-to-date numbers as ne- gotiations progress. "When offers are being made back and forth, we're able to assist either side with what those numbers really mean to the client. Even though an of- fer may not look that appeal- ing at first blush, when we put it into a structure and you see how much it translates into as a monthly payment, perhaps it becomes a bit more appealing, he says. Earlier this year, another " structured settlement profes- sional, Douglas Mitchell of Structured Settlements Group Inc., told the provincial legis- lature' affairs committee that more plaintiffs should be getting their own broker to review proposed structures, which he says oſten end up being initiated by defen- dant insurers. "There are a multitude of s finance and economic variables that affect the calcula- tion of the cost of future needs and other elements in a struc- ture quote to make it appear to address those future needs. People do make errors and do forget elements time," Mitchell told the com- from time to mittee. "Without the oversight of a claimant's structure expert, the defendant's preferred broker's What do your clients need? The means to move on. Guaranteed. Baxter Structures customizes personal injury settlements into tax-free annuities that can help your clients be secure for life. » Pre- and post- settlement consultation and support » Caring professionalism for over 30 years » No fee to you or your clients ™ question or review." good brokers are completely neutral. "We're not there to take a s preferred broker without However, Chobotar insists position; we're just there to put numbers to assumptions. It' contrast to the U.S. where you have plaintiff brokers and de- fence brokers," he says. "We're very much like the s in FREE BAXTER APP! FREE BAXTER APP! Need more information? DOWNLOAD OUR HANDY PRESENT VALUE/LIFE EXPECTANCY APP FOR YOUR MOBILE DEVICE AT BAXTERSTRUCTURES.COM DOWNLOAD OUR HANDY PRESENT VALUE/LIFE EXPECTANCY APP FOR YOUR MOBILE DEVICE AT BAXTERSTRUCTURES.COM Contact us at 1 800 387 1686 or baxterstructures.com mediator. We're there to help both sides achieve resolutions." Fenik agrees. "It doesn't matter which side brought me to the party. "Generally speaking, we'll " he tells Law LT run numbers for both sides and I think we have the credibility that we're not going to violate the Chinese wall, Times. Baxter_LT_Jan9_12.indd 1 www.lawtimesnews.com 12-01-05 4:13 PM mistakes go undetected and ele- ments are excluded or included at the discretion of the defen- dant'

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