Judge: Michael Shultz, Case: 24CMCP00073, Date: 2024-06-13 Tentative Ruling
Case Number: 24CMCP00073 Hearing Date: June 13, 2024 Dept: A
24CMCP00073
In re Petition of: Palm Gate Agency, LLC
[TENTATIVE] ORDER GRANTING
Real party in interest, Breniyah Burley
(“Burley”), settled a prior civil action in Case No. TC027341 Brejanea Burley,
et al. v. County of Los Angeles for the alleged wrongful death of a parent. The
Hon. Mark C. Kim approved the settlement of $600,000 on January 13, 2022, which
funds were used to settle an annuity providing for structured payments to Burley
over time.
Burley has entered into an agreement to
sell a portion of future scheduled payments totaling $179,457.24. In exchange,
Burley agreed to accept $45,548.00, which is the discounted present value of
the transferred payments.
California Insurance Code section 10139.5
provides that a transfer of structured settlement payment rights is not
effective unless the transfer has been approved in advance in a final court
order based on the following express findings by the court:
(1) The transfer is in the best
interest of the payee, considering 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 understands and does not wish to
exercise the payee’s right to cancel the transfer agreement. (Ins. Code, §
10139.5(a).)
In
determining whether the proposed transfer of structured settlement rights is
reasonable and in the best interest of the transferor, the court considers the
totality of circumstances “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; (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; (5) whether the future periodic payments
were intended to pay for future medical care of the payee related to the
incident that was the subject of the settlement; (6) whether the payee has
other means of income or support sufficient to meet the payee’s future
financial obligations for support of payee’s dependents, such as child support;
(7) whether there were previous transactions involving payee’s structured
settlement payments; and (8) whether the payee and his or her dependents are
facing a hardship situation.” Ins. Code, § 10139.5(b).
Petitioner
provided the required disclosures to the transferor including the terms of the
transfer and advising transferor to seek legal advice, among other information
required by statute. (Pet Ex. D, E.).
Burley
is now 19 years old, is not married, and does not have dependents. (Burley Decl,
Ex. F.) Burley will use the funds to pay for college tuition as she is
currently in three different schools. (Burley Decl., Ex. H.) She requires the funds
for a rental she has obtained. She does not wish to incur student loan
obligations. She will not use the funds for future living expenses.
Based
on the foregoing, the Court approves the Petition for Transfer of Structured
Settlement Payments.