Judge: Armen Tamzarian, Case: 23STCP04442, Date: 2024-01-09 Tentative Ruling

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Case Number: 23STCP04442    Hearing Date: January 9, 2024    Dept: 52

Petitioner Cashworthy, LLC’s Motion for Order Approving Transfer of Structured Settlement Payment Rights

            Petitioner Cashworthy, LLC petitions for approval of transfer of structured settlement rights by payee Robbie Davenport. 

Insurance Code section 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.

Insurance Code section 10139.5(b) requires the court to consider 15 enumerated factors in determining whether this transfer should be approved.  After considering all relevant factors and the totality of the circumstances, the court finds the transfer is fair, reasonable, and in payee Robbie Davenport’s best interest.

Express Written Findings

Insurance Code section 10139.5(a) requires the court’s order of approval to include six “express written findings.”  The court hereby makes the following express written findings as required under Insurance Code section 10139.5:

(1) The transfer is in the best interest of payee Davenport, taking into account the welfare and support of the payee’s dependents.  Davenport has no dependents.  (Ex. C; Ex. F, Davenport Decl., ¶ 2.)  She plans to use the $92,065 “to purchase studio equipment to advance [her] career as a singer and writer.”  (Id., ¶ 9.)  She states, “Investing in studio equipment will significantly enhance my career in that I will have access to a more professional sound quality, more versatility and convenience, and will improve my learning and skill development as far as recording and editing.”  (Ibid.)

(2) Payee Davenport has been advised in writing by Cashworthy, LLC to seek independent professional advice regarding the transfer and knowingly waived, in writing, the opportunity to receive the advice.  (Ex. D; Ex. F, Davenport Decl., ¶ 13.) 

(3) The transferee has complied with the notification requirements pursuant to paragraph (2) of subdivision (f), the transferee has provided the payee with a disclosure form that complies with Section 10136, and the transfer agreement complies with Sections 10136 and 10138.

(4) The transfer does not contravene any applicable statute or the order of any court or other government authority.

(5) Payee Davenport understands the terms of the transfer agreement, including the terms set forth in the disclosure statement required by Section 10136.

(6) Payee Davenport understands and does not wish to exercise her right as payee to cancel the transfer agreement.

Disposition

The court grants petitioner Cashworthy, LLC’s motion for order approving transfer of structured settlement payment rights.  The court hereby approves the proposed transfer attached to the verified petition as Exhibit A.