Judge: Serena R. Murillo, Case: 23STCP03447, Date: 2023-10-25 Tentative Ruling
Case Number: 23STCP03447 Hearing Date: October 25, 2023 Dept: 31
TENTATIVE
The Unopposed Petition for
Approval for Transfer of Payment Rights is GRANTED.
Legal
Standard
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 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 understands and does not wish to
exercise the payee’s right to cancel the transfer agreement.¿
(Ins. Code §
10139.5(a).)¿
¿
When determining
whether the proposed transfer should be approved, including whether the
transfer is fair, reasonable, and in the payee’s best interest, the court shall
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 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).)¿¿
¿
Procedurally,
Insurance Code section 10136 provides that ten or more days before the payee
executes a transfer agreement, the transferee shall provide the payee¿with a
separate written disclosure statement, accurately completed with the
information that applies to the transfer agreement in at least 12-point type.
(Ins. Code § 10136(b).)¿¿
¿
The
court-approval process requires the transferee to file a petition in the county
in which the transferor resides for approval of the transfer.¿ (Ins. Code §
10139.5(f)(1).)¿ In addition, the following elements are required to be served
and filed not less than 20 days prior to the scheduled hearing on any
application for approval of a transfer of structured settlement payment
rights:¿
A.
A copy of the transferee’s current and any
prior petitions.¿
B.
A copy of the transfer agreement.¿
C.
A listing of each of the payee’s
dependents, together with each dependent’s age.¿
D.
A copy of the disclosure required in
subdivision (b) of Section 10136.¿
E.
A copy of the annuity contract, if
available.¿
F.
A copy of any qualified assignment
agreement, if available.¿
G.
A copy of the underlying structured
settlement agreement, if available.¿
H.
If a copy of a document described in
subparagraph (E), (F), or (G) is unavailable or cannot be located, then the
transferee is not required to attach a copy of that document to the petition or
notice of the proposed transfer if the transferee satisfies the court that
reasonable efforts to locate and secure a copy of the document have been made,
including making inquiry with the payee. If the documents are available, but
contain a confidentiality or nondisclosure provision, then the transferee shall
summarize in the petition the payments due and owing to the payee, and, if
requested by the court, shall provide copies of the documents to the court at a
scheduled hearing.¿
I.
Proof of service showing compliance with
the notification requirements of this section.¿¿
J.
Notification that any interested party is
entitled to support, oppose, or otherwise respond to the transferee’s
application, either in person or by counsel, by submitting written comments to
the court or by participating in the hearing.¿
K.
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 application must be filed, which may
not be less than 15 days after service of the transferee's notice, in order to
be considered by the court.¿
L.
If the payee entered into the structured
settlement at issue within five years prior to the date of the transfer
agreement, then the transferee shall provide notice to the payee’s attorney of
record at the time the structured settlement was created, if the attorney is
licensed to practice in California, at the attorney’s address on file with the
State Bar of California. The notice shall be delivered by regular mail.¿
¿(Ins. Code §
10139.5(f)(2))¿
¿
Lastly, the
court¿shall retain continuing jurisdiction to interpret and monitor the
implementation of the transfer agreement as justice requires.¿ (Ins. Code §
10139.5(i).)¿¿¿
Discussion
Petitioner seeks
approval of the transfer of a structured settlement payment rights.
In 2010, Payee
Emma Thayer, became entitled to a structured settlement in connection with a
personal injury claim. Payee is transferring 1 payment of $72,000 on October
19, 2029. Payee will receive $30,000 from this transaction. Payee has not completed previous
transactions involving the payee’s structured settlement payments.
Based on the
information provided, the Court finds that the transfer of the settlement
payment is reasonable and in the best interest of the payee. Thayer is a
23-year-old who makes $1,600 per month. The future period payment that is the subject of the proposed
transfer was not intended to pay for the future medical care and treatment
relating to the incident that was the subject of the settlement. (Thayer Decl.,
¶ 6.) Payee is
experiencing financial hardship and will use the proposed settlement to pay to
get her car back after it was repossessed, credit card debt, outstanding bills,
and rent. (Thayer Decl., ¶ 11.) When looking at the factors under California
Insurance Code § 10139.5 as well as the Declaration of Payee, Emma Thayer, the
transfer is appropriate.
Therefore, the
Petition for Approval for Transfer of Payment Rights is granted.
Conclusion
For the foregoing
reasons, the Petition for Approval for Transfer of Payment Rights is
GRANTED.
Moving party is ordered to give notice.