Judge: Mark C. Kim, Case: 22LBCP00080, Date: 2022-08-09 Tentative Ruling

Case Number: 22LBCP00080    Hearing Date: August 9, 2022    Dept: S27

1.     Background Facts

Petitioner, Transamerica Life Insurance Company initiated this action by way of a petition for approval for transfer of structured settlement payment rights on 3/23/22.  On 6/28/22, Petitioner filed an amended petition and noticed it for hearing on 8/04/22. 

2.     Proposed Transfer

Transferor M.L. Ma’ae obtained a structured settlement in 1998 in connection with a personal injury action. Transferor would like to sell future lump payments of (a) $12,500 due on 11/16/24, (b) $17,500 due on 11/16/29, and (c) monthly guaranteed payments of $200 from 2/16/24 to 10/16/36.  Transferor wishes to sell the future payments for a total of $35,155.  The amount of the future payments is $60,600 and the discounted present value of those payments is $52,592. 

3.     Law Governing Transfer of Structured Settlement Payments

Pursuant to Insurance Code §10139.5:

(a) A direct or indirect transfer of structured settlement payment rights is not effective and a structured settlement obligor or annuity issuer is not required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order based on express written findings by the court that:

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

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

When determining whether the proposed transfer should be approved, including whether the transfer is fair, reasonable, and in the payee's best interest, taking into account the welfare and support of the payee's dependents, the court shall consider the totality of the circumstances, including, but not limited to, those factors set forth under Ins. C. §10139.5(b). Any petition to transfer payments from a structured settlement must be supported by specific documentation and information as set forth in Ins. C. §10139.5(c), which provides:

Every petition for approval of a transfer of structured settlement payment rights, except as provided in subdivision (d), shall include, to the extent known after the transferee has made reasonable inquiry with the payee, all of the following:

(1) The payee's name, address, and age.

(2) The payee's marital status, and, if married or separated, the name of the payee's spouse.

(3) The names, ages, and place or places of residence of the payee's minor children or other dependents, if any.

(4) The amounts and sources of the payee's monthly income and financial resources and, if presently married, the amounts and sources of the monthly income and financial resources of the payee's spouse.

(5) Whether the payee is currently obligated under any child support or spousal support order, and, if so, the names, addresses, and telephone numbers of any individual, entity, or agency that is receiving child or spousal support from the payee under that order or that has jurisdiction over the order or the payments in question.

(6) Information regarding previous transfers or attempted transfers.

If the petitioner fails to attach the information required under Ins. C. §10139.5(c)(2)-(6), the petitioner may submit the information at the hearing on the petition. If the information is admitted into the record in accordance with the rules of evidence, the requirement under Ins. C. §10139.5(c) is satisfied.

4.     Analysis

Transferor’s declaration is attached as Exhibit H to the amended petition.  Transferor is 27 years old and lives with a partner and 23-month-old child. Transferor is disabled and in school, and wishes to use the lump sum to pay down a consolidated loan she has that has interest at 12%, which will help her finish school and become an occupational therapist, which will provide her necessary income in the future.  She has never sold or transferred her interest in the future payments previously. 

The Court finds Transferor’s declaration is sufficient to meet the requirements to transfer the right to receive the settlement payments in exchange for a lump sum payment.  The petition is therefore granted. 

Petitioner is ordered to give notice. 

Parties who intend to submit on this tentative must send an email to the court at gdcdepts27@lacourt.org indicating intention to submit on the tentative as directed by the instructions provided on the court website at www.lacourt.org.  If the department does not receive an email indicating the parties are submitting on the tentative and there are no appearances at the hearing, the motion may be placed off calendar.  If a party submits on the tentative, the party’s email must include the case number and must identify the party submitting on the tentative.  If the parties do not submit on the tentative, they should arrange to appear remotely.