Judge: Joseph Lipner, Case: 23STCP01926, Date: 2023-10-05 Tentative Ruling

Case Number: 23STCP01926    Hearing Date: October 5, 2023    Dept: 72

SUPERIOR COURT OF CALIFORNIA

COUNTY OF LOS ANGELES

DEPARTMENT 72

TENTATIVE RULING

Petitioner and Transferee Great Plains Management Corporation (“Petitioner”) filed a Petition for Approval for Transfer of Structured Settlement Payment Rights (the “Petition”).

The Court GRANTS the Petition.

Background

          On May 31, 2023, Petitioner filed the Petition seeking approval of transfer of structured settlement payment rights.  Payee Teresa Vidaurre (“Vidaurre”) will transfer to Petitioner future payments totaling $136,800.00 in exchange for a purchase price of $86,480.00. According to the Petition: (1) Vidaurre entered into a structured settlement agreement as defined in Ins. Code § 10134(j) for the settlement of claim for damages arising in connection with a personal injury claim (Petition at ¶ 1); (2) the structured settlement agreed to by the Payee provides for certain lump sum and/or periodic payments (Id. at ¶ 2); (3) the original underlying party initially required to make payments to the Payee pursuant to the terms of the structured settlement agreement is New York Life Insurance & Annuity Corp., who is the structured settlement obligor (Id. t ¶ 3); (4) in order to fulfill its obligation to make structured settlement payments to Vidaurre, New York Life Insurance & Annuity Corp. purchased an annuity contract from New York Life Insurance Company who is the annuity issuer (Id. at ¶ 4); (5) concurrently with the purchase of the annuity contract, New York Life Insurance & Annuity Corp. may have also entered into a separate Qualified Assignment Agreement pursuant to Cal. Ins. Code § 10134(i) (Id. at ¶ 5); and (6) Vidaurre and Petitioner have entered into a proposed Transfer Agreement as further defined in Ins. Code § 10134(o) for the sale of the structured settlement payment rights (Id. at ¶ 6).

          On July 19, 2023, Petitioner filed and served a Notice of Errata and Errata to the Petition stating that it was being filed to reflect the correct the true and correct name of the Vidaurre. Petitioner also filed and served the declaration of Vidaurre in support of the Petition on July 19, 2023. Petitioner also filed and served a Notice of Supplemental Filings in Compliance with Ins. Code § 10139.5(F)(2) on July 19, 2023. The Notice of Supplemental Filings includes, among other documents, the Proposed Transfer Agreement, a copy of the California Disclosure Statement, a listing of payee dependents together with their age, and the Annuity Contract.

          On July 31, 2023, Petitioner filed and served the Petition, Notice of Hearing, and Notice of Supplemental Filings on Interested Party stating that Karen Vidaurre is an additional interested party to the transfer, as well as a proof of service indicating that Karen Vidaurre was served with the aforementioned documents on July 27, 2023. On July 31, 2023, Petitioner filed and served a Notice of Waiver from Karen Vidaurre which states that Karen Vidaurre consents to the transfer and that the transfer may proceed without her being present at the hearing.

          The Petition is unopposed.

Discussion

          Compliance with California Insurance Code, Section 10139.5(f)(1)

Under California Insurance Code, Section 10139.5(f)(1), all petitions for approval of transfer of structured settlement payment rights must be filed by the transferee in the county where the payee is residing at the time of the agreement, or if the payee is domiciled outside of California, in the county of the settlement obligor or annuity issuer.

The declaration of Vidaurre in support of the Petition states that she resides in Los Angeles County, California. Therefore, the Court finds that the Petition was filed in the correct county and venue is proper. 

Compliance with California Insurance Code, Section 10139.5(f)(2)

          California Insurance Code, Section 10139.5(f)(2) provides that 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.  Included with the notice of the proposed transfer, a transferee must include a listing of each of the payee’s dependents, together with each dependent’s age.  (Cal. Ins. Code § 10139.5(f)(2)(C).)  Cal. Ins. Code § 10139.5(f)(2)(A) requires the transferee to file with court and serve on interested parties “[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).”  Information regarding previous transfers or attempted transfers may be provided by providing copies of pleadings, transaction documents, or orders involving any previous attempted or completed transfer or providing the court a summary of available information regarding any previous transfer or attempted transfer.  (Cal. Ins. Code § 10139.5(c)(6).) 

          Petitioner has filed the proposed transfer agreement (Notice of Supplemental Filings at Exhibit A) and the disclosure form required by California Insurance Code, Section 10136(b) (Id. at Exhibit B). The declaration of Vidaurre states that she is widowed and has no minor children and Petitioner has provided a list stating that Vidaurre has no dependents.  (Vidaurre Decl. at ¶ 2; Notice of Supplemental Filings at Exhibit C.)  Petitioner has provided the Court with the Qualified Assignment and Release (Notice of Supplemental Filings at Exhibit E.) Counsel for Petitioner, Eugene A. Ahtirski, declares that all attempts to locate the underlying settlement agreement have been unsuccessful and that reasonable efforts have been made to locate the settlement agreement. (Notice of Supplemental Filings at Exhibit E.)

          Thus, the Petition complies with California Insurance Code, Section 10139.5(f)(2).  All procedural requirements have been satisfied.

Compliance with California Insurance Code, Section 10139.5

Under California Insurance Code, Section 10139.5, a transfer of structured settlement payment rights is not effective unless the transfer has been approved in advance in a final court order.  In order to approve the transfer, the Court must make the following findings pursuant to California Insurance Code, Section 10139.5:

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 Insurance Code section 10136 and the transfer agreement complies with Insurance Code 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 Insurance Code section 10136.

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

According to the declaration of Vidaurre in support of the Petition:

(1) she is 75 years old, widowed with no minor children, and has never been under any court order to pay child or spousal support to any individual entity or agency (Vidaurre Decl., ¶ 2); (2) she is currently facing financial hardship and has agreed to sell a portion of her interests in her structured settlement to the Petitioner to reduce that hardship (Id., ¶ 3); (3) the original structured settlement was the result of the settlement of a personal injury claim for her husband who was injured at work and lost both of his arms (Id., ¶ 4); (4) she has no medical issues that require future annuity payments and the future structured settlement payments that she is now selling were not intended to be used to pay for future medical care or medical treatment (Id.); (5) she has not completed any prior transfers (Id.); and (6) if approved, she will receive the sum of $86,480.00 in exchange for the sale and transfer of 100 monthly payments in the amount of $1,368.00 which will become due and payable commencing July 1, 2023 through October 1, 2031 (Id., ¶ 5).

Vidaurre further declares that she believes the amount is fair and reasonable. (Id., ¶ 6). Vidaurre also states that: (1) the funds from this transfer are necessary because she has several goals that she will not be able to accomplish without the use of the monies such as repairing and restoring her home, paying down unsecured credit card debt, and paying down medical bills (Id., ¶ 7); (2) she read and received the written disclosure and was advised therein to seek independent legal or financial advice from an accountant or lawyer as to the implications of the transfer (Id., ¶ 11); (3) she has decided to waive that advice (Id.); (4) she understands the nature and terms of the transfer agreement, the transfer itself, and the terms set forth in the disclosure statement (Id., ¶ 12); (5) she is entering into the transaction with Petitioner under he own free will and volition (Id.); (6) she does not wish to cancel the transfer agreement (Id.); and (7) she received and reviewed copies of the purchase agreement offered by Petitioner, a copy of the Petition, a copy of all disclosures required by California Insurance Code, Section 10136, and an advisory statement of her rights to seek independent counsel and financial advice in connection with the Petition. (Id.)  Vidaurre states that the proposed transfer of structured settlement payment rights is in her best interest. (Id. ¶ 14.)

Petitioner provided a disclosure form that complies with California Insurance Code, Section 10136 (Notice of Supplemental Filings at Exhibit B) and a transfer agreement that complies with California Insurance Code, Sections 10136 and 10138 (Notice of Supplemental Filings at Exhibit A.)  The transfer will not contravene any applicable statute or known order of a Court or other governmental authority. 

A review of the Petition reveals that it includes the evidence necessary to make the findings required under California Insurance Code, Section 10139.5.

The Petition is therefore GRANTED.

Moving party is ordered to give notice.