Judge: Lee W. Tsao, Case: 23NWCP00067, Date: 2023-05-03 Tentative Ruling

Case Number: 23NWCP00067    Hearing Date: May 3, 2023    Dept: C

EXPEDITING SERVICES, INC. v. METROPOLITAN LIFE INSURANCE

CASE NO.:  23NWCP00067

HEARING:  5/3/23 @ 1:30 PM

#3

TENTATIVE RULING

Petitioner Expediting Services, LLC’s petition for approval of transfer of structured settlement payment rights is DENIED without prejudice. 

Moving Party to give NOTICE.

Petitioner Expediting Services, LLC petition for approval of transfer of structured settlement payment rights is DENIED without prejudice.

A transfer of structured settlement payment rights is void unless all of the following conditions are met: (a) The transfer of the structured settlement payment rights is fair and reasonable and in the best interest of the payee, taking into account the welfare and support of his or her dependents. (b) The transfer complies with the requirements of this article, will not contravene other applicable law, and is approved by a court as provided in Section 10139.5. (Ins. Code § 10137.)

Insurance Code § 10139.5 sets forth 15 factors to consider when reviewing a petition for transfer of a structured settlement, including (1) the reasonable preference and desire of the payee to complete the proposed transaction, taking into account the payee's age, mental capacity, legal knowledge, and apparent maturity level; (2) the stated purpose of the transfer; (3) the payee's financial and economic situation; and (4) the terms of the transaction, including whether the payee is transferring monthly or lump sum payments or all or a portion of his or her future payments.

The court cannot determine that the transfer is in Transferor’s best interests.  According to the petition, Transferor has agreed to sell:  future payments totaling $532,877.70 in exchange for $241,818.00; and future payments totaling $3,839,000.00 in exchange for $967,733.81.  The Transferor has a wife and three children.  However, the Transferor’s declaration does not indicate how old he is, whether he is employed, whether he has any court-ordered child support or maintenance obligations, and the reason why he needs immediate access to the funds as opposed to receiving the future annuity payments.

Accordingly, Petition is DENIED without prejudice.