Judge: Melvin D. Sandvig, Case: 22CHCP00419, Date: 2023-01-05 Tentative Ruling

Case Number: 22CHCP00419    Hearing Date: January 5, 2023    Dept: F47

Dept. F47

Date: 1/5/23

Case #22CHCP00419

PETITION FOR APPROVAL

OF

TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS

Petition filed on 12/8/22.

PETITIONER/TRANSFEREE: Hoover Circle, LLC

TRANSFEROR: A.G.

RULING: The petition is granted.   

In 2019, Transferor’s guardian settled a personal injury case which entitled Transferor to future periodic payments, including but not limited to monthly payments of $1,000.00, guaranteed for 10 years.  (See Petition, Ex.C ¶5).  Payments starting on 08/23/2020 with the last guaranteed payment on 07/23/2031, 1 Lump Payment of $25,000.00 payable on 08/23/2026, 1 Lump Payment of $36,345.67 payable on 08/23/2031.  Id.  The entity obligated to fund these payments is MetLife Assignment Company, Inc., and the entity that issued this annuity is Metropolitan Tower Life Insurance Company.  Id.  The original settlement was not intended as compensation for physical injuries and Transferor has no continuing need to provide for future medical expenses.  Id.  Transferor has not located any documents concerning the original settlement.  Id.

Transferor is 21 years old, single, has no minor children, but Transferor is expecting her first child.  Transferor also has no child support obligations.  (Petition, Ex.C ¶¶4, 6).  By way of the instant petition, Transferor seeks to transfer the $25,000.00 lump sum payment payable on 08/23/2026 and the $36,345.67 lump sum payment payable on 08/23/2031 to Transferee for the payment of $23,500.00.  (Id. ¶¶7-8; Ex.A).  Transferor plans to use the money for housing and costs associated with her pregnancy and the subsequent birth of her child.  (Id. ¶8).  Transferor has previously assigned a portion of the structured settlement payment rights.  (Id. ¶9).  After the instant transaction, Transferor will have no remaining payments under the annuity.  (Id. ¶10).

Prior to entering the transaction, Transferor requested that the beneficiary under the annuity be changed to her own personal estate.  (Petition, Ex.C ¶11).  Therefore, there are no additional beneficiaries under the annuity policy that would qualify as interested parties to this action entitled to receive notice under Insurance Code 10134(g), et seq.  Id.  Additionally, Transferor received and read the separate written disclosure required by Insurance Code 10136(b), at least 10 days before she signed the Transfer Agreement.  (Id. ¶¶12, 14; Ex.B).   

Transferor was also advised of her right to seek independent counsel and financial advice in connection with the petition for court approval of the transfer agreement.  (Petition, Ex.C ¶13).  Transferor was advised that if she retained counsel, a licensed certified public accountant, or a licensed actuary in connection with a petition for an order approving the transfer agreement, that Transferee would pay the fees of said counsel, accountant, or actuary, regardless of whether the transfer agreement is approved, and regardless of whether the attorney, accountant, or actuary filed any document or appears at the hearing on the petition, in the aggregate amount not to exceed $1,500.  Id.  Transferor waived her right to seek an independent advisor.  Id.

Based on the foregoing, the petition is granted.  Petitioner/Transferee is ordered to submit an order in compliance with Insurance Code 10139.5(a).