Judge: Christopher K. Lui, Case: 24STCP03409, Date: 2025-02-06 Tentative Ruling
Case Number: 24STCP03409 Hearing Date: February 6, 2025 Dept: 76
Petitioner Intellifund, LLC’s petition
for approval of transfer of structured settlement payment rights is GRANTED.
ANALYSIS
Petition For Approval Of Transfer Of Structured Settlement Payments
A direct or indirect transfer of structured settlement payment rights is not effective unless the transfer has been approved by a court order finding:
1) The transfer is in the best
interest of the payee, taking into account the welfare and support of the
payee's dependents;
2) The payee has been advised in writing by the transferee to seek independent
professional advice regarding the transfer and has either received that advice
or knowingly waived that advice in writing;
3) 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) The payee reasonably understands the terms of the transfer agreement,
including the terms set forth in the disclosure statement required by Section
10136;
6) The payee reasonably understands and does not wish to exercise the payee's
right to cancel the transfer agreement.
(Insurance Code, § 10139.5(a).)
Pursuant to a personal injury settlement, Enrique Rivera (“Transferor” or “Payee”) is entitled to certain structured settlement payments.
Rivera, as Transferor, and Petitioner Intelifund, LLC have entered into a Purchase Agreement, whereby Transferor agrees to transfer future payments totaling $133,171.00 consisting of 3 payments ($20,000; $30,000, and $83,171), due August 16, 2025, August 16, 2029, and August 16, 2034, in exchange for a purchase price of $52,939.96. (Amended Petition, Exh. 2.)
The discounted present value of the amount being sold is $97,463.32, calculated by applying the 4.4% discount rate utilized by the Internal Revenue Service to value annuities in probate proceedings. The purchase price was calculated using a discount rate of 15.41%. If Transferor did not sell the right to receive structured settlement payments but instead borrowed the net amount of $52,939.96.00 and paid that loan back in installments with each of the payments transferor is now selling, the equivalent interest rate would be 15.41%. (Amended Petition, Exh. 4.)
All of this information has been properly disclosed to the Transferor by way of the disclosure form in compliance with Insurance Code § 10136, as required by § 10139.5(a)(3). (Amended Petition, Exh. 4.) Transferor was advised in writing to seek independent professional advice, both legal and financial. (Id.) Transferor chose not to seek such advice. (Amended Petition, Exhs. 5.7.) The Petitioner has complied with the disclosure requirements. (Ins. Code, § 10139.5(a)(2).)
The transfer agreement (Amended Petition, Exh. 2) complies with Insurance Code §§ 10136 and 10138 [§ 10139.5(a)(3)]; the transfer does not contravene any applicable statute or order of any court or other governmental authority (Ins. Code, § 10139.5(a)(4)).
A copy of the relevant portion of the annuity contract (summary) was attached, as required by Ins. Code § 10139.5(f)(2)(E). (Amended Petition, Exh. 9.)
A copy of the qualified assignment agreement was submitted as required by Ins. Code § 10139.5(f)(2)(F). (Amended Petition, Exh. 9.)
A copy of the underlying structured settlement agreement was attached as required by Ins. Code § 10139.5(f)(2)(G). (Amended Petition, Exh. 9.)
Information About Transferor
Transferor is 20 years old, single with no minor children or other dependents (Amended Petition, Exh. 5; Declaration of Enrique Rivera, ¶ 4.)
The Transferor’s address is set forth, as required by Ins. Code § 10139.5(c)(1). (Rivera Decl., ¶ 4.)
Transferor intends to use the funds to
purchase a work truck and pay off his tuition at UEI. (Rivera Decl., ¶ 6.)
Transferor does not have any court-ordered child support or maintenance obligations. (Rivera Decl., ¶ 5.)
Transferor has not completed previous transactions involving the payee’s structured settlement payments in the past. (Rivera Decl., ¶ 7; Ins. Code, § 10139.5(b)(10) – (12).)
Payments from the underlying settlement were not intended to pay for the future medical care and treatment relating to the incident, or for necessary living expenses. (Rivera Decl., ¶ 3; Ins. Code, § 10139.5(b)(5) & (6).)
Transferor does not require any future medical
care and treatment related to the personal injury. (Rivera Decl., ¶ 3; Ins. Code, §
10139.5(b)(7).)
Given the foregoing, the Court finds that the transfer is fair, reasonable and in the best interest of the Payee/Transferor, taking into account the welfare and support of any dependents. (Ins. Code, § 10139.5(a)(1) & (b)(1) - (15).) The Payee/Transferor understands the terms of the transfer agreement, including those set forth in the § 10136 disclosure statement (Ins. Code, § 10139.5(a)(5)).) Payee/Transferor has evidenced his understanding of the right to cancel and election not to cancel the transfer agreement. (Rivera Decl., ¶ 14; Insurance Code § 10139.5(a)(6).)
The
Petitioner has served a copy of the notice to all interested parties. (Ins.
Code, § 10139.5(f)(2).
The
petition for approval of transfer of structured settlement payment rights is GRANTED.