Judge: Armen Tamzarian, Case: 22STCP04061, Date: 2023-01-12 Tentative Ruling

Case Number: 22STCP04061    Hearing Date: January 12, 2023    Dept: 52

Petitioner Daou Whitehaven, LLC’s Amended Petition for Approval of Transfer of Structured Settlement Payment Rights

            Petitioner Daou Whitehaven, LLC petitions for approval of transfer of structured settlement rights by payee Blandina Mendez.

Insurance Code § 10137 provides:

A transfer of structured settlement payment rights is void unless a court reviews and approves the transfer and finds the following conditions are met:

(a) The transfer of the structured settlement payment rights is fair and reasonable and in the best interest of the payee, taking into account the welfare and support of his or her dependents.

(b) The transfer complies with the requirements of this article, will not contravene other applicable law, and the court has reviewed and approved the transfer as provided in Section 10139.5.

            The court finds that the transfer is fair and reasonable and in the best interest of payee Mendez.  Under the transfer, petitioner will pay Mendez $357,187.22 in exchange for the right to 335 future monthly payments with a discounted present value of $614,983.99.  This transfer is equivalent to paying an annual interest rate of 10.8%. 

Mendez’s purpose of entering the transfer agreement is to purchase a residence.  (Amended Mendez Decl., ¶ 10.)  She currently rents an apartment and earns about $35,000 annually.  (Id., ¶¶ 2, 5.)  She has no dependents.  (Id., ¶ 4.)  Mendez retained an attorney, Jason F. Lowe, who agrees this transfer is a sound financial decision.  (Id., ¶ 15 & Lowe’s letter.)

The transfer complies with the requirements of Division 2, Part 2, Chapter 1, Article 2.3 of the Insurance Code.  (§ 10134 et seq.)  It will not contravene other applicable law. 

            Petitioner Daou Whitehaven, LLC’s amended petition is granted.  The court has reviewed and hereby approves the transfer as provided under Insurance Code § 10139.5.