Judge: Layne H. Melzer, Case: 22-01269513, Date: 2022-08-04 Tentative Ruling

Petitioner Peachtree Settlement Funding, Llc
Motion - Other (For Approval of Transfer of Payment Rights)

The court denies Petitioner Peachtree Settlement Funding, LLC’s Verified Petition for Approval for Transfer of Payment Rights for approval for transfer of part of a future payment in the amount of $40,000 from Darleen Mendez to Petitioner in exchange for a purchase price of $14,500.

Payee wants to transfer part of a lump sum payment, $40,000 of a $54,577.28 payment due on 7/5/28. Insurance Code §10139.3(e) provides, however, that a trial court cannot require an annuity issuer to divide payments. (RSL Funding, LLC v. Alford (2015) 239 Cal.App.4th 741, 746.)

Further, the quotient in this case is only 44.83% for a guaranteed payment due in 2028. This is low, especially considering that the payment is guaranteed. Payee would be paying an interest rate of 18.39% if this was a loan.

Based on the evidence provided, the court cannot find that the transfer of the structured settlement payment rights is fair and reasonable, and in the best interest of the payee pursuant to Insurance Code § 10137(a).