The future belongs to those who prepare for it today. – Malcolm X. Medical debt financing companies require a plaintiff to assign the proceeds of their potential future settlement funds up to the amount of medical expenses financed and then demand that the tortfeasor’s insurance company pay them directly. Here, notwithstanding such a demand, Allstate paid the plaintiff, not MLM, who sued. The Court noted an assignment is a transfer of one’s right to performance to another. A conditional right to funds is assignable. But a right to a future right to funds is not, unless it is to all or a determinable portion of the funds. A demand for specific performance of payment of future funds may be enforceable. But an assignment cannot increase an obligor’s burden to perform. Here, the assignment was ill-defined and not independently determinable and thus not an assignment at the time it was made.
**Disclaimer: the author represents a company engaged in business similar to MLM.