On July 30, 2024, Petitioner filed a Notice of Filing of All Prior Petitions of Payee. 

On July 30, 2024, Petitioner filed a Notice of Filing of All Prior Declarations of Payee. 

On August 14, 2024, just two days before the hearing, Petitioner filed a supplemental declaration of Payee. 

Discussion 

A direct or indirect transfer of structured settlement payment rights is not effective unless the transfer has been approved in a final court order based on certain express written findings by the Court.¿ (Ins. Code, § 10139.5, subd. (a).)¿ 

The transferee must comply with the notification requirements of subdivision (f)(2).¿ (Ins. Code, § 10139.5, subd. (a)(3).)¿A notice of proposed transfer and petition must be filed and served no later than 20 days before the hearing and must include the items enumerated in Institution Code § 10139.5, subd. (f)(2). 

Here, the Court already previously found that Petitioner generally complied with the requirements set forth under Institution Code § 10139.5, subd. (f)(2). (Min. Order, June 26, 2025.)  

(1) a copy of the transferee’s current petition and any other prior petition;  

Previously the Court found that the Petition included a copy of the proposed transfer agreement, disclosure form, and annuity agreement. (Petition, Exhs. A-C.) However, the Payee’s declaration stated that he completed four other petitions in 2023 and 2024 (Todd Decl. ¶9), yet Petitioner failed to provide copies of these prior petitions with this petition. (Min. Order, June 26, 2024.) The Court requested copies of the four prior petitions and supporting declarations be filed, yet Petitioner has not filed them to date.  

(2) a copy of the proposed transfer agreement and disclosure form required by section 10139.5, subdivision (a)(3);  

These documents were included in Exhibits A-C to the Petition. 

(3) a listing of each of the payee’s dependents and their ages;  

Payee previously testified he was not married, did not have minor children, and did not have court-ordered child support obligations. (Todd Decl., ¶8.) Payee’s supplemental declaration, filed on July 15, 2024, now provides contrary information. Payee now declares that his child was born May 5 (no year provided), and that he and his partner plan to move to Nevada. (Suppl. Todd Decl. ¶ 4.) The supplemental declaration fails to actually specify who are payee’s dependents and their ages.   

(4) a copy of the disclosure required in section 10136, subdivision (b);  

Attached as Exh. B. 

(5) a copy of the annuity contract, any qualified assignment agreement, and underlying structured settlement agreement, if available;  

The annuity contract is attached as Exhibit C. The settlement agreement begins at pdf p.34.) 

(6) proof of service showing compliance with the notification requirements; (7) notification that any interested party is entitled to support, oppose, or otherwise respond to the transferee’s petition by submitting written comments to the court or by participating in the hearing; (8) 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; and (9) notice to the payee’s attorney of record at the time the structured settlement was created, if payee entered into the structured settlement at issue within five years prior to the date of the transfer agreement.¿ (Ins. Code, § 10139.5, subd. (f)(2).) 

The Petition includes notification of the time and place of the hearing, notice that interested parties are entitled to respond, notice of the manner in which a written response must be filed, and notice to Payee’s settlement attorney of record.  

The transfer agreement must comply with Insurance Code sections 10136 and 10138.¿ (Ins. Code, § 10139.5, subd. (a)(3).)¿Here, the transfer agreement contains the required text and form. (Motion, Exh. A.) 

Accordingly, the Court finds that the transfer agreement complies with Insurance Code sections 10136 and 10138.¿ 

The transfer must not contravene any applicable statute or the order of any court or other government authority.¿ (Ins. Code, § 10139.5, subd. (a)(4).)¿ 

The transfer generally complies with statutory requirements, and there is no evidence that it contravenes the order of any court or other government authority.  

Accordingly, the Court finds that this requirement is satisfied.  

The payee must be advised in writing by the transferee to seek independent professional advice regarding the transfer and either receive that advice or knowingly waive, in writing, the opportunity to receive the advice.¿ (Ins. Code, § 10139.5, subd. (a)(2).)¿ 

The Transfer Agreement advises that Payee may receive independent legal and financial advice, but Payee knowingly waived the right.¿ (Petition, pdf p. 25.) 

Accordingly, the Court finds that this requirement is satisfied.¿ 

The transferee must provide the payee with a disclosure form that complies with Insurance Code section 10136.  (Ins. Code, § 10139.5, subd. (a)(3).)  The disclosure form must contain specific text, and the transferee must provide the disclosure form at least ten days before the payee executes a transfer agreement.  (Ins. Code, § 10136, subd. (b).)  

The disclosure form here contains the required text and form.  (Motion, Exh. B.)  Payee received and read the disclosure form at least ten days before signing the transfer agreement.  (Id.) 

Accordingly, the Court finds that this requirement is satisfied. 

The payee must understand the terms of the transfer agreement, including the terms set forth in the disclosure statement, and the right to cancel the transfer agreement.  (Ins. Code, § 10139.5, subd. (a)(5)-(6).)  

Payee declares that he understands the terms of the transfer agreement, including the terms set forth in the disclosure statement.  (Todd Decl., ¶13.)  Additionally, Payee signed the Transfer Agreement directly under a statement advising him of his right to cancel the agreement.  (Petition, pdf p.25.)  

The Court therefore finds that this requirement is satisfied. 

The transfer must be in the best interest of the payee, taking into account the welfare and support of the payee’s dependents.  (Ins. Code, § 10139.5, subd. (a)(1).)  When determining whether the transfer is fair, reasonable, and in the payee’s best interests, the Court must consider the totality of the 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, when the settlement was completed, the future periodic payments that are the subject of the proposed transfer were intended to pay for the future medical care and treatment of the payee relating to injuries sustained by the payee in the incident that was the subject of the settlement and whether the payee still needs those future payments to pay for that future care and treatment;  

(6) whether, when the settlement was completed, the future periodic payments that are the subject of the proposed transfer were intended to provide for the necessary living expenses of the payee and whether the payee still needs the future structured settlement payments to pay for future necessary living expenses;  

(7) whether the payee is, at the time of the proposed transfer, likely to require future medical care and treatment for the injuries that the payee sustained in connection with the incident that was the subject of the settlement and whether the payee lacks other resources, including insurance, sufficient to cover those future medical expenses;  

(8) whether the payee has other means of income or support, aside from the structured settlement payments that are the subject of the proposed transfer, sufficient to meet the payee’s future financial obligations for maintenance and support of the payee’s dependents, specifically including, but not limited to, the payee’s child support obligations, if any;  

(9) whether the financial terms of the transaction, including the discount rate applied to determine the amount to be paid to the payee, the expenses and costs of the transaction for both the payee and the transferee, the size of the transaction, the available financial alternatives to the payee to achieve the payee’s stated objectives, are fair and reasonable;  

(10) whether the payee completed previous transactions involving the payee’s structured settlement payments and the timing and size of the previous transactions and whether the payee was satisfied with any previous transaction;  

(11) whether the transferee attempted previous transactions involving the payee’s structured settlement payments that were denied, or that were dismissed or withdrawn prior to a decision on the merits, within the past five years;  

(12) whether, to the best of the transferee’s knowledge after making inquiry with the payee, the payee has attempted structured settlement payment transfer transactions with another person or entity, other than the transferee, that were denied, or which were dismissed or withdrawn prior to a decision on the merits, within the past five years;  

(13) whether the payee, or his or her family or dependents, are in or are facing a hardship situation;  

(14) whether the payee received independent legal or financial advice regarding the transaction; and  

(15) any other factors or facts that the payee, the transferee, or any other interested party calls to the attention of the reviewing court or that the court determines should be considered in reviewing the transfer.