Judge Shirley K. Watkins, Case 23VECP00007 2023-02-07 Tentative Ruling

Judge: Shirley K. Watkins, Case: 23VECP00007, Date: 2023-02-07 Tentative Ruling

Case Number: 23VECP00007 Hearing Date: February 7, 2023 Dept: T

Coppice v. TM

23VECP00007

Tentative ruling: Petition to approve sale of rights under annuity

Granted. The Court approves this Petition and enters this order in accordance with Insurance Code Section 10139.5(b) approving this transfer of structured settlement payment rights and ordering Payment Obligor and Payment Issuer to pay the Transferred Payments to Petitioner or its assignee.

The court has reviewed the documents filed with respect to this motion:

A. Petition for Approval of Transfer of Structured Settlement Payment Rights

B. The Transfer Agreement between Southgate Coppice, LLC, and Payee

C. The Sale and Assignment Agreement

D. Disclosure Statement provided to Payee pursuant to California Insurance Code Section 10136(a)

E. Annuity Contract of Payee

F. Qualified Assignment Agreement related to Payee’s Annuity Agreement, if any.

G. The Best Interest Affidavit

H. Certificate of Marital Status

I. The Independent Professional Advise advisement

J. The Verification of Compliance

The beneficiary under the annuity has submitted a declaration as follows:

I reasonably understand the nature and terms of the transfer agreement, the transfer itself, and the terms set forth in the disclosure statement.
I am entering into the transaction with Southgate Coppice of my own free will and volition, it is my reasonable preference and desire to complete the proposed transaction, and I am doing so without reservation, duress, or undue influence.
I understand all my rights to cancellation, and I do not wish to exercise my right to cancel the Transfer Agreement.
I have received and reviewed copies of: (1) the Purchase Agreement offered by Southgate Coppice; (2) a copy of the Petition for Court Approval for this transfer; (3) a copy of all disclosures required by California Insurance Code Section 10136; (4) and an advisory statement of my rights to seek independent counsel and financial advice in connection with the Transferee's Petition for Court Approval of the Transfer Agreement as required by California Insurance Code section 10139.5(h).

In making this decision, the court has considered the factors set forth in Ins. Code section 10139.5 as follows:

(1) The transfer is in the best interest of the payee, taking into account the welfare and support of the payee's dependents (there are none).

(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, in writing, the opportunity to receive the advice.

(3) The transferee has complied with the notification requirements pursuant to paragraph (2) of subdivision (f), 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 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.

(b) When determining whether the proposed transfer should be approved, including whether the transfer is fair, reasonable, and in the payee's best interest, taking into account the welfare and support of the payee's dependents, the court shall consider the totality of the circumstances, including, but not limited to, all of the following:

(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 (they are not) 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 (they were not).

(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 (not applicable).

(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 (there are none). The payee shall disclose to the transferee and the court his or her court-ordered child support or maintenance obligations for the court's consideration (there are none).

(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 (there were none).

(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 (none).

(13) Whether the payee, or his or her family or dependents, are in or are facing a hardship situation (yes, payee is).

(14) Whether the payee received independent legal or financial advice regarding the transaction. The court may deny or defer ruling on the petition for approval of a transfer of structured settlement payment rights if the court believes that the payee does not fully understand the proposed transaction and that independent legal or financial advice regarding the transaction should be obtained by the payee.

(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.