Judge: Gregory Keosian, Case: 24STCP00048, Date: 2024-03-07 Tentative Ruling

Case Number: 24STCP00048    Hearing Date: March 7, 2024    Dept: 61

Peachtree Settlement Funding, LLC’s Petition for Approval of Payment Rights from K.L. is GRANTED.

I.      TRANSFER PETITION

Insurance Code section 10136 states:

(a) No direct or indirect transfer of structured settlement payment rights by a payee to which this article applies shall be effective, and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to a transferee, unless all of the provisions of this section are satisfied.

(b) Ten or more days before the payee executes a transfer agreement, the transferee shall provide the payee with a separate written disclosure statement, accurately completed with the information that applies to the transfer agreement, in substantially the following form . . . .

In order for a court to approve such transfer, certain statutory provisions as set forth in Section 10139.5 must be met. These include findings of the following:

(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, in writing, the opportunity to receive the advice.

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

(6) The payee understands and does not wish to exercise the payee's right to cancel the transfer agreement.

A court must also find that the transfer is “fair and reasonable” in light of the payee’s best interest and their dependents. (Ins. Code § 10137.)

Payee Kadie Lobo (Payee) submits a declaration in support of this petition to transfer payment rights to Petitioner Peachtree Settlement Funding, LLC (Petitioner). Payee is 28 years old, married, with on minor child, age three. (Amended Lobo Decl. ¶ 8.) By the proposed transfer of rights to four payments of $10,000 each, due to be paid on the third of June for the years 2027–2030, Payee has agreed to receive a lump sum of $15,419.09. (Lobo Decl. ¶ 5.) Payee states that the payments were not intended to pay for future medical care or necessary living expenses. (Lobo Decl. ¶¶ 6–7.) Payee intends to use the lump sum payment to pay current living expenses while transitioning back into the workforce. (Lobo Decl. ¶ 11.) Payee previously obtained court approval for a transfer of rights to three annual payments of $12,500.00 to take place on June 3, 2024–2026. (Lobo Decl. ¶ 9.)

Payee has received and signed a disclosure form in compliance with Insurance Code § 10136 and states that they have read and understood the transfer agreement and do not wish to cancel it. (Lobo Decl. ¶ 13; Petition Exhs. A, B.) The disclosure form states that the discounted present value of the payment rights is $31,221.43, and if Payee instead obtained a loan in the amount of the lump sum and paid back the loan with the installments to be transferred, the interest on the loan would be 21.99% per year. (Petition Exh. B.)

Based on the above, the transfer is fair and reasonable in light of Payee’s best interest. The Payee has been advised to seek independent counsel, the required disclosure form has been provided, the transfer does not contravene any statute or court order, and the Payee understands the terms of the transfer. Payee does not wish to cancel the transfer.

The petition is GRANTED.