Judge Cherol J. Nellon, Case Number: 24STCP02823, Date: 2024-11-16 Tentative Ruling

Judge: Cherol J. Nellon, Case: 24STCP02823, Date: 2024-11-16 Tentative Ruling

Case Number: 24STCP02823 Hearing Date: November 16, 2024 Dept: 14

Case Background

This is a petition for approval for transfer of payment rights between Gail Belbeck and Petitioner CBC Settlement Funding, LLC.

On August 30, 2024, Petitioner CBC Settlement Funding, LLC filed its petition for transfer of structured settlement payment rights.

On September 10, 2024, Petitioner filed a motion for order approving the transfer of structured settlement payment rights.

Instant Pleading

Petitioner moves for an order approving the transfer of structured settlement payment rights under Ins. Code, section 10139.5.

Decision

Petitioner CBC Settlement Funding, LLC’s motion for an order approving the transfer of structured settlement payment rights is DENIED without prejudice.

Legal Standard

Insurance Code § 10139.5 states, in pertinent part, as follows:

“(a) A direct or indirect transfer of structured settlement payment rights is

not effective and a structured settlement obligor or annuity issuer is not

required to make any payment directly or indirectly to any transferee of

structured settlement payment rights unless the transfer has been approved

in advance in a final court order based on express written findings by the

court that:

(1) The transfer is in the best interest of the payee, taking into account the

welfare and support of the payee's dependents…
(b) When determining whether the proposed transfer should be approved,

including whether the transfer is fair, reasonable, and in the payee's best

interest, taking into account the welfare and support of the payee's

dependents, the court shall consider the totality of the circumstances,

including, but not limited to, all of the following:

(1) The reasonable preference and desire of the payee to complete the

proposed transaction, taking into account the payee's age, mental capacity,
legal knowledge, and apparent maturity level.

(2) The stated purpose of the transfer.

(3) The payee's financial and economic situation.

(4) The terms of the transaction, including whether the payee is

transferring monthly or lump sum payments or all or a portion of his or

her future payments.

(5) Whether, when the settlement was completed, the future periodic

payments that are the subject of the proposed transfer were intended to

pay for the future medical care and treatment of the payee relating to

injuries sustained by the payee in the incident that was the subject of the

settlement and whether the payee still needs those future payments to pay

for that future care and treatment.

(6) Whether, when the settlement was completed, the future periodic

payments that are the subject of the proposed transfer were intended to

provide for the necessary living expenses of the payee and whether the

payee still needs the future structured settlement payments to pay for future

necessary living expenses.

(7) Whether the payee is, at the time of the proposed transfer, likely to

require future medical care and treatment for the injuries that the payee

sustained in connection with the incident that was the subject of the

settlement and whether the payee lacks other resources, including

insurance, sufficient to cover those future medical expenses.
(8) Whether the payee has other means of income or support, aside from

the structured settlement payments that are the subject of the proposed

transfer, sufficient to meet the payee's future financial obligations for

maintenance and support of the payee's dependents, specifically including,

but not limited to, the payee's child support obligations, if any .

(9) Whether the financial terms of the transaction, including the discount

rate applied to determine the amount to be paid to the payee, the

expenses and costs of the transaction for both the payee and the

transferee, the size of the transaction, the available financial alternatives

to the payee to achieve the payee's stated objectives, are fair and

reasonable.
(10) Whether the payee completed previous transactions involving the

payee's structured settlement payments and the timing and size of the

previous transactions and whether the payee was satisfied with any

previous transaction.

(11) Whether the transferee attempted previous transactions involving

the payee's structured settlement payments that were denied, or that

were dismissed or withdrawn prior to a decision on the merits, within the

past five years.
(12) Whether, to the best of the transferee's knowledge after making

inquiry with the payee, the payee has attempted structured settlement

payment transfer transactions with another person or entity, other than

the transferee, that were denied, or which were dismissed or withdrawn

prior to a decision on the merits, within the past five years.
(13) Whether the payee, or his or her family or dependents, are in or

are facing a hardship situation.
(14) Whether the payee received independent legal or financial advice

regarding the transaction. The court may deny or defer ruling on the

petition for approval of a transfer of structured settlement payment

rights if the court believes that the payee does not fully understand the

proposed transaction and that independent legal or financial advice

regarding the transaction should be obtained by the payee.
(15) Any other factors or facts that the payee, the transferee, or any

other interested party calls to the attention of the reviewing court or that

the court determines should be considered in reviewing the transfer…

(f)(1) A petition under this article for approval of a transfer of structured

settlement payment rights shall be made by the transferee and brought in

the county in which the payee resides at the time the transfer agreement

is signed by the payee, or, if the payee is not domiciled in California, in

the county in which the payee resides or in the county where the

structured settlement obligor or annuity issuer is domiciled.
(2) Not less than 20 days prior to the scheduled hearing on any petition

for approval of a transfer of structured settlement payment rights under

this article, the transferee shall file with the court and serve on all

interested parties a notice of the proposed transfer and the petition for its

authorization, and shall include the following with that notice:
(A) A copy of the transferee's current petition and any other prior

petition, whether approved or withdrawn, that was filed with the court

in accordance with paragraph (6) of subdivision (c).
(B) A copy of the proposed transfer agreement and disclosure form

required by paragraph (3) of subdivision (a).
(C) A listing of each of the payee's dependents, together with each

dependent's age.
(D) A copy of the disclosure required in subdivision (b) of Section

10136.
(E) A copy of the annuity contract, if available.
(F) A copy of any qualified assignment agreement, if available.
(G) A copy of the underlying structured settlement agreement, if available.

(H) If a copy of a document described in subparagraph (E), (F), or (G) is

unavailable or cannot be located, then the transferee is not required to

attach a copy of that document to the petition or notice of the proposed

transfer if the transferee satisfies the court that reasonable efforts to locate

and secure a copy of the document have been made, including making

inquiry with the payee…”

Discussion

The petition does not comply with Ins. Code, section 10139.5 because it lacks information which would allow the Court to determine whether the transfer is in the best interests of the payee. Petitioner must include evidence, such as a declaration from the payee, supporting the factors enumerated in Ins. Code, section 10139.5. Without this information, the Court cannot rule on this petition.

The Court notes that portions of the exhibits submitted with this petition were improperly redacted. If Petitioner has privacy concerns, it is required to file a motion to seal and lodge unredacted copies of the documents with the Court.

Therefore, the petition is DENIED without prejudice.

Conclusion

Petitioner CBC Settlement Funding, LLC’s motion for an order approving the transfer of structured settlement payment rights is DENIED without prejudice.