Article 1 Structured Damages 6-11-1 – 6-11-7
Article 2 Punitive Damages 6-11-20 – 6-11-30
Article 3 Structural Settlement Protection Act 6-11-50 – 6-11-59

Terms Used In Alabama Code > Title 6 > Chapter 11 - Damages

  • Affirmed: In the practice of the appellate courts, the decree or order is declared valid and will stand as rendered in the lower court.
  • alea: The Alabama State Law Enforcement Agency. See Alabama Code 41-9-590
  • Allegation: something that someone says happened.
  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • ANNUITY ISSUER: An insurer that has issued a contract to fund periodic payments under a structured settlement. See Alabama Code 6-11-51
  • Answer: The formal written statement by a defendant responding to a civil complaint and setting forth the grounds for defense.
  • Appellate: About appeals; an appellate court has the power to review the judgement of another lower court or tribunal.
  • Arrest: Taking physical custody of a person by lawful authority.
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • association: Includes, but is not limited to, an unincorporated nonprofit association as defined in Chapter 17 and an unincorporated professional association as defined in Article 1 of Chapter 30. See Alabama Code 10A-1-1.03
  • Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
  • Attorney-at-law: A person who is legally qualified and licensed to practice law, and to represent and act for clients in legal proceedings.
  • Bail: Security given for the release of a criminal defendant or witness from legal custody (usually in the form of money) to secure his/her appearance on the day and time appointed.
  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • certificate of incorporation: as used in this chapter is synonymous to the term "certificate of formation" used in Chapter 1. See Alabama Code 10A-2A-1.40
  • chiropractic: The same meaning as in Chapter 24 of Title 34. See Alabama Code 27-59-1
  • CLEAR AND CONVINCING EVIDENCE: Evidence that, when weighed against evidence in opposition, will produce in the mind of the trier of fact a firm conviction as to each essential element of the claim and a high probability as to the correctness of the conclusion. See Alabama Code 6-11-20
  • collaborator: A private health carrier, third party purchaser, provider, health care center, health care facility, state and local governmental entity, or other public payers, corporations, individuals, and consumers who are expecting to collectively cooperate, negotiate, or contract with another collaborator, or integrated care network in the health care system. See Alabama Code 22-6-220
  • Continuance: Putting off of a hearing ot trial until a later time.
  • corporation: Includes a domestic or foreign business corporation, including a benefit corporation, as defined in Chapter 2A, a domestic or foreign nonprofit corporation as defined in Chapter 3, a domestic or foreign professional corporation as defined in Chapter 4, and those entities specified in Chapter 20 as corporate. See Alabama Code 10A-1-1.03
  • court: The designated court, and if none, the circuit court specifically set forth in this title, and if none, any other court having jurisdiction in a case. See Alabama Code 10A-1-1.03
  • CRIMINAL JUSTICE AGENCIES: Federal, state, local, and tribal public agencies that perform substantial activities or planning for activities relating to the identification, apprehension, prosecution, adjudication, or rehabilitation of civil, traffic, and criminal offenders. See Alabama Code 41-9-590
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Dependent: A person dependent for support upon another.
  • dependents: A payee's spouse and minor children and all other persons for whom the payee is legally obligated to provide support, including alimony. See Alabama Code 6-11-51
  • DESIGNATED COURT: The court or courts that are designated in the (i) certificate of incorporation or bylaws of a corporation as authorized by Chapter 2A, (ii) limited liability company agreement of a limited liability company formed pursuant to or governed by Chapter 5A, (iii) partnership agreement of a partnership formed pursuant to or governed by Chapter 8A, or (iv) limited partnership agreement of a limited partnership formed pursuant to or governed by Chapter 9A. See Alabama Code 10A-1-1.03
  • director: An individual who serves on the board of directors, by whatever name known, of a foreign or domestic corporation. See Alabama Code 10A-1-1.03
  • DISCOUNTED PRESENT VALUE: The present value of future payments determined by discounting the payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service. See Alabama Code 6-11-51
  • Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
  • distribution: A transfer of property, including cash, from an entity to an owner or member of the entity in the owner's or member's capacity as an owner or member. See Alabama Code 10A-1-1.03
  • domestic: With respect to an entity, means governed as to its internal affairs by this title. See Alabama Code 10A-1-1.03
  • electronic: Relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities. See Alabama Code 10A-1-1.03
  • Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
  • entity: A domestic or foreign organization. See Alabama Code 10A-1-1.03
  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • foreign: With respect to an entity, means governed as to its internal affairs by the laws of a jurisdiction other than this state. See Alabama Code 10A-1-1.03
  • foreign corporation: as used in this division , shall mean:

    (1) Any bank or other corporation now or hereafter organized or existing under the laws of any state of the United States other than this state; and

    (2) Any national banking association or other corporation organized under the laws of the United States having its principal place of business in any state of the United States other than this state. See Alabama Code 10A-2A-15.10

  • foreign corporation: means an entity incorporated or existing under this chapter. See Alabama Code 10A-2A-1.40
  • Fraud: Intentional deception resulting in injury to another.
  • fraud: An intentional misrepresentation, deceit, or concealment of a material fact the concealing party had a duty to disclose, which was gross, oppressive, or malicious and committed with the intention on the part of the defendant of thereby depriving a person or entity of property or legal rights or otherwise causing injury. See Alabama Code 6-11-20
  • Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor
  • Grace period: The number of days you'll have to pay your bill for purchases in full without triggering a finance charge. Source: Federal Reserve
  • GROSS ADVANCE AMOUNT: The sum payable to the payee or for the payee's account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from the consideration. See Alabama Code 6-11-51
  • HEALTH BENEFIT PLAN: Any individual or group plan, employee welfare benefit plan, policy, or contract for health care services issued, delivered, issued for delivery, or renewed in this state by a health care insurer, health maintenance organization, accident and sickness insurer, fraternal benefit society, nonprofit hospital service corporation, nonprofit medical service corporation, health care service plan, or any other person, firm, corporation, joint venture, or other similar business entity that pays for insureds or beneficiaries in this state. See Alabama Code 27-59-1
  • HEALTH BENEFIT PLAN: Any individual or group plan, employee welfare benefit plan, policy, or contract for health care services issued, delivered, issued for delivery, or renewed in this state by a health care insurer, health maintenance organization, accident and sickness insurer, fraternal benefit society, nonprofit hospital service corporation, nonprofit medical service corporation, health care service plan, or any other person, firm, corporation, joint venture, or other similar business entity that pays for insureds or beneficiaries in this state. See Alabama Code 27-58-1
  • Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
  • INDEPENDENT PROFESSIONAL ADVICE: Advice of an attorney, certified public accountant, actuary, or other licensed professional adviser. See Alabama Code 6-11-51
  • INTEGRATED CARE NETWORK: One or more statewide organizations of health care providers, with offices in each regional care organization region, that contracts with the Medicaid Agency to provide Medicaid benefits to certain Medicaid beneficiaries as defined in subdivision (4) and that meets the requirements set forth in this article. See Alabama Code 22-6-220
  • Inter vivos: Transfer of property from one living person to another living person.
  • INTERESTED PARTIES: With respect to any structured settlement, the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee's death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under such structured settlement. See Alabama Code 6-11-51
  • Intestate: Dying without leaving a will.
  • law: Unless the context requires otherwise, both statutory and common law. See Alabama Code 10A-1-1.03
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Legacy: A gift of property made by will.
  • Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
  • malice: The intentional doing of a wrongful act without just cause or excuse, either:

    a. See Alabama Code 6-11-20

  • Mistrial: An invalid trial, caused by fundamental error. When a mistrial is declared, the trial must start again from the selection of the jury.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • NET ADVANCE AMOUNT: The gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under subdivision (5) of Section 6-11-52. See Alabama Code 6-11-51
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • officer: An individual elected, appointed, or designated as an officer of an entity by the entity's governing authority or under the entity's governing documents. See Alabama Code 10A-1-1.03
  • oppression: Subjecting a person to cruel and unjust hardship in conscious disregard of that person's rights. See Alabama Code 6-11-20
  • Oversight: Committee review of the activities of a Federal agency or program.
  • payee: An individual who is receiving tax free payments under a structured settlement and proposes to make a transfer of payment rights thereunder. See Alabama Code 6-11-51
  • PERIODIC PAYMENTS: Includes both recurring payments and scheduled future lump sum payments. See Alabama Code 6-11-51
  • person: An individual, including the estate of an incompetent or deceased individual, or an entity, whether created by the laws of this state or another state or foreign country, including, without limitation, a general partnership, limited liability partnership, limited partnership, limited liability limited partnership, limited liability company, corporation, professional corporation, nonprofit corporation, professional association, trustee, personal representative, fiduciary, as defined in Section 19-3-150 or person performing in any similar capacity, business trust, estate, trust, association, joint venture, government, governmental subdivision, agency, or instrumentality, or any other legal or commercial entity. See Alabama Code 10A-1-1.03
  • Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
  • PRINCIPAL OFFICE: The office, in or out of this state, where the principal executive office, whether referred to as the principal executive office, chief executive office, or otherwise, of an entity is located. See Alabama Code 10A-1-1.03
  • QUALIFIED ASSIGNMENT AGREEMENT: An agreement providing for a qualified assignment within the meaning of Section 130 of the United States Internal Revenue Code, United States Code Title 26, as amended from time to time. See Alabama Code 6-11-51
  • Quorum: The number of legislators that must be present to do business.
  • Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
  • RESPONSIBLE ADMINISTRATIVE AUTHORITY: With respect to a structured settlement, any government authority vested by law with exclusive jurisdiction over the settled claim resolved by such structured settlement. See Alabama Code 6-11-51
  • Service of process: The service of writs or summonses to the appropriate party.
  • SETTLED CLAIM: The original tort claim resolved by a structured settlement. See Alabama Code 6-11-51
  • state: Includes, when referring to a part of the United States, a state or commonwealth, and its agencies and governmental subdivisions, and a territory or possession, and its agencies and governmental subdivisions, of the United States. See Alabama Code 10A-1-1.03
  • STRUCTURED SETTLEMENT: An arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim. See Alabama Code 6-11-51
  • STRUCTURED SETTLEMENT AGREEMENT: The agreement, judgment, stipulation, or release embodying the terms of a structured settlement. See Alabama Code 6-11-51
  • STRUCTURED SETTLEMENT OBLIGOR: With respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. See Alabama Code 6-11-51
  • STRUCTURED SETTLEMENT PAYMENT RIGHTS: Rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, where:

    a. See Alabama Code 6-11-51

  • subscription: include a mark when the person cannot write, if his name is written near the mark, and witnessed by a person who writes his own name as a witness, and include with respect to corporate securities facsimile signature placed upon any instrument or writing with intent to execute or authenticate such instrument or writing. See Alabama Code 1-1-1
  • Summons: Another word for subpoena used by the criminal justice system.
  • TERMS OF THE STRUCTURED SETTLEMENT: Include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement, and any order or other approval of any court or responsible administrative authority or other government authority that authorized or approved the structured settlement. See Alabama Code 6-11-51
  • Testator: A male person who leaves a will at death.
  • Testify: Answer questions in court.
  • Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
  • transfer: Any sale, assignment, pledge, hypothecation, or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration; provided that the term does not include the creation or perfection of a security interest in structured settlement payment rights under a security agreement entered into with a bank or other insured depository institution or a subsidiary or affiliate of a bank or other insured depository institution (secured party) until and unless the secured party redirects the structured settlement payments to such secured party, or an agent or successor in interest thereof, or otherwise enforces the security interest against the structured settlement payment rights. See Alabama Code 6-11-51
  • TRANSFER AGREEMENT: The agreement providing for a transfer of structured settlement payment rights. See Alabama Code 6-11-51
  • TRANSFER EXPENSES: All expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including, without limitation, court filing fees, attorneys' fees, escrow fees, lien recordation fees, judgment and lien search fees, finders' fees, commissions, and other payments to a broker or other intermediary. See Alabama Code 6-11-51
  • transferee: A party acquiring or proposing to acquire structured settlement payment rights through a transfer; provided that the term does not include a secured party who has not received a transfer of the structured settlement payment rights as the term "transfer" is defined in subdivision (18). See Alabama Code 6-11-51
  • Trustee: A person or institution holding and administering property in trust.
  • Verdict: The decision of a petit jury or a judge.
  • wantonness: Conduct which is carried on with a reckless or conscious disregard of the rights or safety of others. See Alabama Code 6-11-20
  • Writ: A formal written command, issued from the court, requiring the performance of a specific act.