Justice Lottie Wilkins
Verdugo's property guardian sought to set aside four assignments under Mental Hygiene Law §81.29(d) claiming he lacked capacity to enter into them with Peachtree Funding Northeast. Verdugo sustained severe injuries, including a brain bleed, resulting in significant neurological deficits. Peachtree issued four funding agreement issuing money to Verdugo against the proceeds of his pending personal injury suit. The court found hearing evidence fell short of meeting the burden of showing Verdugo was suffering from a mental illness rendering him incapable of comprehending the nature of the transaction. As such, the evidence was insufficient to support a finding Verdugo was incompetent when the four agreements were executed. The court stated there was insufficient proof Verdugo's mind was so impacted as to render him incapable of understanding the nature of his transaction with Peachtree when he executed the agreements. The court noted a doctor opined that during the course of treatment, Verdugo's condition fluctuated, thereby rendering it difficult to determine what his state of mind was when he executed each contract. Hence, the application was denied.
