Judge: Colin Leis, Case: 24STCP00949, Date: 2025-03-05 Tentative Ruling

Case Number: 24STCP00949    Hearing Date: March 5, 2025    Dept: 74

In The Matter of Gulf Pine Closing, LLC

Petitioner Gulf Pine Closing, LLC’s Petition for Approval for Transfer of Structured Settlement Payment Rights.

BACKGROUND 

On March 25, 2024, Petitioner Gulf Pine Closing, LLC (“Petitioner” or “Transferee”) filed its Petition for Approval for Transfer of Structured Settlement Payments Rights pursuant to California Insurance Code Section 10134 et seq. (the “Petition”).

The Petition alleges Transferor, E.C. (“Payee”) has agreed to transfer, and Petitioner has agreed to purchase, periodic payments, as referenced within their proposed Transfer Agreement. (Petition ¶¶ 2, 6-9, Ex. A.)  Prudential Assigned Settlements Services Corporation (“Obligor”) is the obligor, and Prudential Insurance Company of America (“Annuity Issuer”) is the annuity issuer who issued an insurance contract used to fund the structured settlement payment obligations of Obligor.  (Petition ¶¶ 3-4.) 

On March 28, 2024, Petitioner filed its Notice of Motion.

DISCUSSION¿ 

Petitioner seeks approval of the transfer of certain structured settlement payment rights from Payee to Petitioner or its assignee.  Petitioner alleges that that transfer of structured settlement payment rights in the present matter is fair and reasonable and in the best interests of Payee, taking into account the welfare and support of the Payee's dependents, if any.

As a preliminary matter, there is no proof of service attached to the Notice of Motion filed by Petitioner.  As such, it is unclear to whom Petitioner sent Notice.  The Petition itself does not have a proof of service either.

The court notes several other defects as follows.

First, Petitioner has not complied with the required notice under Insurance Code, section 10139.5(f)(2) as Petitioner does not attach a copy of any other prior petition, the annuity contract, or the qualified assignment agreement.  Subdivision (f)(2)(H) provides an exemption if documents are unavailable or cannot be located, however, Petitioner has not described reasonable efforts to locate and secure a copy of the documents.  If there is no other prior petition, then the Petition should state so.  Further, the date that Payee entered into the settlement agreement is left blank on Exhibit F, “AFFIDAVIT IN LIEU OF SETTLEMENT AGREEMENT.”  As such, it is unclear whether Payee entered into the structured settlement within five years prior to the date of the transfer agreement.  If so, then Transferee must provide the notice outlined under section 10139.5, subd. (f)(2)(L).  

Second, the Petition does not comply with the Payee information requirements under Insurance Code section 10139.5, subdivision (c).  Specifically, the following information is missing: Payee’s name, address, and age; the amounts and sources of the payee's monthly income and financial resources; whether the payee is currently obligated under any child support or spousal support order; and information regarding previous transfers or attempted transfers. Petitioner does not provide a declaration or affidavit of Payee.  Thus, the Court cannot determine if the Payee understands the nature and terms of the transaction. Without the foregoing information, the Court is unable to make the necessary findings under Insurance Code section 10139.5, subdivision (a).

Third, attached as Exhibit D to the Petition is a document titled, “DEPENDENTS OF [Payee].”  Unlike the other documents that are signed and dated by Payee, Exhibit D is not dated.

CONCLUSION¿ 

            Based on the foregoing, the court denies Gulf Pine Closing, LLC’s Petition for Approval for Transfer of Structured Settlement Payment Rights.

            Petitioner shall give notice.