Judge: Mark H. Epstein, Case: 23SMCP00028, Date: 2023-02-23 Tentative Ruling

Case Number: 23SMCP00028    Hearing Date: February 23, 2023    Dept: R

The petition is DENIED WITHOUT PREJUDICE.  Payee D.C. (DC) entered into a structured settlement by which DC would receive monthly payments for 20 years.  DC has already sold some of those payments to petitioner.  DC seeks to sell more for the purpose of buying a home and invest in real estate.  However, there are some issues.

DC claims to be receiving a certain amount, but under the actual agreements DC is receiving a bit less.  While the number is not hugely material (DC overstates what being received by $5902.55), the court is uncomfortable with any discrepancies.  The court also better needs to understand DC’s financial situation.  If the court grants the instant request, DC’s payments would be only slightly more than half of the original monthly sum.  What the court does not know is whether the remaining sum is sufficient to meet DC’s medical needs, which is something the court must consider under Insurance Code section 10139.5(b)(7).  The court also must consider DC’s present and future living expenses according to Insurance Code section 10139.5(b)(6).  The court is also somewhat concerned that less than a year ago, DC sold some of the annuity.  And the court is not convinced that the applied discount rate is fair and reasonable, something else that the court must consider under Insurance Code section 10139.5(b)(9).  The court requires an explanation and proof to support the discount rate and whether it is appropriate. 

For these reasons, the petition is denied without prejudice.  The court is prepared to consider an amended petition that addresses these points.