Judge: Mark A. Young, Case: 24SMCP00668, Date: 2025-02-14 Tentative Ruling

Case Number: 24SMCP00668    Hearing Date: February 14, 2025    Dept: M

CASE NAME:           In Re: Benzen Financial LLC (RPI R.N.)

CASE NO.:                24SMCP00668

MOTION:                  Petition for Approval of Transfer of Structured Settlement Rights

HEARING DATE:   2/15/2025

 

Legal Standard

 

This Petition is governed by Insurance Code sections 10134–10139.5. (321 Henderson Receivables Origination LLC v. Sioteco (2009) 173 Cal.App.4th 1059, 1066.) Under Insurance Code section 10137, a transfer of structured-settlement payment rights is void, unless a court reviews and approves the transfer, and finds the following conditions are met: 

 

  1. 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. 
  1. The transfer complies with the requirements of this article and will not contravene other applicable law, and the court has reviewed and approved the transfer as provided in Section 10139.5. 

 

Pursuant to Insurance Code section 10139.5(a), the Court must also make the following express findings as to a transfer of structured settlement payment rights: 

 

  1. The transfer is in the best interest of the payee, taking into account the welfare and support of the payee's dependents. 
  1. 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 receipt of that advice in writing. 
  1. 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. 
  1. The transfer does not contravene any applicable statute or the order of any court or other government authority. 
  1. The payee reasonably understands the terms of the transfer agreement, including the terms set forth in the disclosure statement required by Section 10136. 
  1. The payee understands and does not wish to exercise the payee's right to cancel the transfer agreement. 

 

Insurance Code section 10139.5(b) sets forth 15 factors to consider in determining whether the transfer is fair and reasonable and in the best interest of the payee, including but not limited to: (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. 

 

Procedurally, Insurance Code section 10136(b) provides that 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 at least 12-point type. The transferee must file a petition in the county in which the transferor resides for approval of the transfer. (Ins. Code, § 10139.5(f)(1).) In addition, the following elements are required to be served and filed not less than 20 days prior to the scheduled hearing on any application for approval of a transfer of structured settlement payment rights: 

 

(A) 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). 

(B) A copy of the¿proposed¿transfer agreement¿and disclosure form required by paragraph (3) of subdivision (a). 

(C) A listing of each of the payee's dependents, together with each dependent's age. 

(D) A copy of the disclosure required in¿subdivision (b) of Section 10136.  

(E) A copy of the annuity contract, if available. 

(F) A copy of any qualified assignment agreement, if available. 

(G) A copy of the underlying structured settlement agreement, if available. 

[…] 

(I) Proof of service showing compliance with the notification requirements of this section. 

(J) Notification that any interested party is entitled to support, oppose, or otherwise respond to the transferee's¿petition, either in person or by counsel, by submitting written comments to the court or by participating in the hearing. 

(K) Notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the¿petition¿must be filed, which may not be less than 15 days after service of the transferee's notice, in order to be considered by the court. 

(L) If the payee entered into the structured settlement at issue within five years prior to the date of the transfer agreement, then the transferee shall provide the following notice to the payee's attorney of record at the time the structured settlement was created, if the attorney is licensed to practice in California, at the attorney's address on file with the State Bar of California… 

 

(Ins. Code, § 10139.5(f)(2)) At the time of filing such a petition, the transferee shall also file a copy of the petition with the California Attorney General. (Ins. Code, § 10139.) The court retains continuing jurisdiction to interpret and monitor the implementation of the transfer agreement as justice requires. (Ins. Code, § 10139.5(i).) The transfer agreement is effective only upon approval in a final court order. (Ins. Code, § 10139.5(a).)   

 

ANALYSIS

 

Petitioner Bentzmen Financial LLC moves for court approval of the transfer of certain structured settlement payment rights from the Payee R. N. to Petitioner pursuant to California Insurance Code, Section 10139.5.

 

Petitioner has not filed the required documents. Petitioner has only filed redacted copies of the Transfer Agreement and certain disclosures with the Petition. There is no declaration or other substantial evidence supporting any of the six factors identified in section 10139.5(a) or the fifteen factors identified in section 10139.5(b). For example, there is no evidence showing: 1) the reasonable preference and desire of the Payee to complete the proposed transaction; 2) Payee's age, mental capacity, legal knowledge, and apparent maturity level; 3) the purpose of the transfer; 4) Payee's financial and economic situation; or 5) the unredacted terms of the transaction. Petitioner has not filed or explained the unavailability of any annuity contract, qualified assignment agreement, underlying structured settlement agreement, or proof of service showing compliance with the notification requirements. (Ins. Code § 10139.5(f).) Petitioner does not provide proof of service with the California Attorney General. (Ins. Code, § 10139.)

 

Accordingly, the Petition is DENIED without prejudice.