Judge: Stephen Morgan, Case: 23AVCP00069, Date: 2023-04-25 Tentative Ruling
Case Number: 23AVCP00069 Hearing Date: April 25, 2023 Dept: A14
Background
Transferor Matthew T. Harris (“Transferor”) received a structured settlement in 1996 arising out of a personal injury claim. The structured settlement provided for periodic payments.
On March 07, 2023, Petitioner Symetra Assigned Benefits Service Company (“Petitioner”) filed this Petition for Approval for Transfer of Structured Settlement Payment Rights (“Petition”) seeking to transfer a certain amount of Transferor’s structure settlement to itself or, if needed, its assignee.
On March 20, 2023, Petitioner filed a Notice of the Petition, a Proposed Order, a Declaration in Support of Petition, and a Proof of Service.
Procedural Requirements
Insurance Code section 10137 generally provides that: “[a] transfer of structured settlement payment rights is void unless a court reviews and approves the transfer.” In approving the transfer, the court must make the following findings: (a) the transfer of the structured settlement payment rights is fair and reasonable and in the best interest of the payee, taking into account the welfare and support of his or her dependents; and (b) the transfer complies with the requirements of this article, will not contravene other applicable law, and the court has reviewed and approved the transfer as provided in [Insurance Code] Section 10139.5.” (Id.)
All petitions for approval of structured settlement payment rights must be filed by the transferee in the county where the payee is residing at the time of the agreement, or if the payee is domiciled outside of California, in the county of the settlement obligor or annuity issuer. (Ins. Code, § 10139.5, subd. (f)(1).) All court costs and filing fees must be paid by the transferee. (Id., § 10139.5, subd. (g).) At least 20 days before the hearing on the petition, the transferee must “file with the court and serve on all interested parties a notice of the proposed transfer and the petition for its authorization.” (Ins. Code, § 10139.5, subd. (f)(2).) The following materials must be included with the notice and petition:
(1) Any
other prior petition (regardless of whether it was withdrawn or approved);
(2) The
proposed transfer agreement and disclosure form;
(3) A
listing of each payee’s dependents, along with their age;
(4) The disclosure required by Ins. Code § 10136,
subd. (b);
(5) The
annuity contract (if available);
(6) The
qualified assignment agreement (if available);
(7) The
underlying structured settlement agreement (if available);
(8) A
proof of service showing compliance with notification requirements;
(9) A
notification to all interested parties that they are “entitled to support,
oppose, or otherwise respond to the transferee's petition, either in person or
by counsel, by submitting written comments to the court or by participating in
the hearing”; and
(10) A notification to the payee’s attorney of record in the structured settlement (only if entered into in the last five years).
(Id., § 10139.5, subd. (f)(2).)
The Petition, filed on March 07, 2023, and the Notice of Hearing, filed on March 20, 2023, were meet the timing requirements set out, ante. Petitioner has separately filed a proof of service to show compliance with the notification requirements. The Petition itself includes the material set out by Ins. Code, § 10139.5, subd. (f)(2).
Written Determinations & Court’s Findings
Insurance Code section 10139.5, subdivision (a), provides that the court must review the proposed transfer and make the following written determinations:
(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, 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.
(Ins. Code, § 10139.5, subd. (a).)
The court’s consideration of “whether the transfer should be approved,” particularly “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,” (per Ins. Code § 10137, subd. (a)) is based on taking the following issues into account:
(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. 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.
(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. 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.
(Ins. Code, § 10139.5, subd. (b).)
The Court has reviewed the
materials submitted in connection with the Petition, including the Petition,
and the Notice of Hearing, with all exhibits appended thereto; and now makes
the following written findings, pursuant to Insurance Code section 10139.5,
subdivision (a):
Here, the proposed transfer is for $48,000.00 to Petitioner in exchange for $25,165.99. Transferor’s total settlement is $431,562.00 plus monthly payments of $3,264.61, beginning in 2028 and (1) continuing as long as Transferor is alive, and (2) in no event shall there be less than 240 payments. (Decl. Kelsey Willits ¶¶ 5-13; Exh. A.) Transferor has had one previous petition which transferred $43,000.00 in exchange for $20,661.50. Transferor will use the amount received from this transfer for his catering business. (See Exh. E ¶ 13.) Transferor’s catering business is his source of income which helps support his family, including his wife and three dependents. (Id. at ¶¶ 1 and 10.) Transferor has provided the Court with the incomes of both his wife and himself. (Id. at ¶ 10.)
The notification and disclosure requirements set out by statute have been adhered to. Transferor declares that he understands the terms of the transaction and that he either sought or waived the advice of independent counsel regarding this transaction. (Id. at ¶¶ 6-7.) The structured settlement that Transferor entered into in 1996 was not intended to pay for his necessary future medical care and treatment or living expenses and Transferor informs the Court that he does not likely need any of the payments that are being transferred for such expenses. (Id. at ¶ 12.)
The Court finds the Petition to be in the best interest of Transferor.
Accordingly, the Petition is GRANTED.
Conclusion
Petitioner Symetra Assigned
Benefits Service Company’s Petition for Approval for Transfer of Structured
Settlement Payment Rights is GRANTED.