Judge: Teresa A. Beaudet, Case: 22STCP01974, Date: 2022-07-28 Tentative Ruling

Case Number: 22STCP01974    Hearing Date: July 28, 2022    Dept: 50

Superior Court of California

County of Los Angeles

Department 50

Petitioner Peachtree Settlement Funding of California, LLC (“Petitioner”) requests that the Court approve the transfer of structured settlement payment rights by and between Ienda Williams (“Payee”) and Petitioner pursuant to Insurance Code §§ 10134, et seq.

Under the transfer agreement entered into on June 13, 2022, Payee agreed to transfer one payment of $11,000.00 on September 17, 2028, and one payment of $24,366.13 on September 17, 2033, in exchange for a purchase price of $11,640.00. (First Amended Petition, Ex. A.) The effective equivalent interest rate is 12.50% per year. (Ibid.)

Under Insurance Code section 10136(b), 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. Petitioner complied. (First Amended Petition, Ex. B.) The disclosure complies with Insurance Code section 10136(b) by stating all the information and other disclosures required by this section. The transfer agreement also complies with Insurance Code section 10136(c) by containing the required information and further disclosures. (First Amended Petition, Amended Ex. A.)

Insurance Code section 10138 prohibits certain provisions. The transfer agreement in this proceeding does not contain any of the prohibited provisions. The transfer agreement also complies with provisions set forth in Insurance Code section 10139.3.

Under Insurance Code section 10137, a transfer of structured settlement payment rights is void unless a court reviews and approves the transfer and finds the following conditions are met: (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; (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.

Under Insurance Code section 10139.5, factors to consider include (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; and (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.

Payee is over the age of 18. (Williams Decl., ¶ 1.)[1] Payee is single and does not have any court-ordered child support obligations. (Williams Decl., ¶¶ 1, 8.) Payee is currently unemployed and experiencing a financial hardship. (Williams Decl., ¶¶ 8, 11.) If approved, Payee will use the money received from the proposed settlement for moving expenses, and the remaining funds will be Payee’s supplemental income while she looks for a job. (Williams Decl., ¶ 11.) Payee indicates that when the underlying settlement was completed, the future period payment(s) that are the subject of the proposed transfer were not intended to pay for future medical care and treatment relating to the incident that was the subject of the settlement. (Williams Decl., ¶ 6.)  Payee also indicates that when the underlying settlement was completed, the future periodic payments that are the subject of the proposed transfer were solely monetary in nature and were not intended to provide for necessary living expenses. (Williams Decl., ¶ 7.) The Court finds that the transaction is fair and reasonable and in the best interest of Payee.

Under Insurance Code section 10139.5(a)(2), the petitioner is required to advise the payee in writing to seek independent professional advice regarding the transfer and the payee must either obtain such advice or waive, in writing, the opportunity to receive such advice. Petitioner indicates that Payee has been advised to seek independent professional representation regarding the transfer and has waived the opportunity to seek and receive such representation. (First Amended Petition, Ex. E.) 

Insurance Code section 10139.5(f)(2) requires that a notice of the proposed transfer and the petition for its authorization be filed with the court and served on all interested parties not less than 20 days prior to the scheduled hearing on any petition for approval of a transfer of structured settlement payment rights. Certain information must be included with the notice.   

The First Amended Petition includes the required elements. The transfer agreement complies with the other required elements in Insurance Code section 10139.5.

Conclusion

Based on the foregoing, the Petition is granted. The Court will review the proposed order submitted late yesterday and if appropriate, the Court will sign it.

Petitioner is ordered to provide notice of this Order.

DATED:  July 28, 2022                                  ________________________________

Hon. Teresa A. Beaudet

Judge, Los Angeles Superior Court