Judge: Theresa M. Traber, Case: 23STCP04281, Date: 2024-01-19 Tentative Ruling

Case Number: 23STCP04281    Hearing Date: January 19, 2024    Dept: 47

Tentative Ruling

Judge Theresa M. Traber, Department 47

HEARING DATE:     January 19, 2024                   TRIAL DATE: NOT SET

CASE:                         In the Matter of Bentzen Financial, LLC

CASE NO.:                 23STCP04281           

MOTION FOR ORDER APPROVING TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS

MOVING PARTY:               Petitioner Bentzen Financial, LLC

RESPONDING PARTY(S): No response on eCourt as of 01/17/24

CASE HISTORY:

·         11/22/23: Petition for approval of transfer of structured settlement payment rights filed. 

·         12/18/23: Amended Petition filed.

STATEMENT OF MATERIAL FACTS AND/OR PROCEEDINGS:

            Petitioner seeks court approval of a proposed transfer of structured settlement payments.  

TENTATIVE RULING:

            Petitioner seeks court approval of a proposed transfer of structured settlement payments.  

A direct or indirect transfer of structured settlement payment rights is not effective unless the transfer has been approved by a court order finding:  

(1) The transfer is in the best interest of the payee, considering 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(a).) 

As a result of a personal injury settlement entered into when he was a minor, Payee Gilbert Becerrada. became entitled to certain structured settlement payments. (Amended Petition ¶¶ 7-9.) 

Mr. Becerrada, as Payee, and Petitioner Bentzen Financial, LLC, as Assignee, have entered into a Structured Settlement Payments Purchase Agreement, under which Payee is to sell future payments totaling $603,979.30 in exchange for a purchase price of $246,000. (Amended Petition Exh. A §§ 4.3-4.5.)  

The discounted present value of the amount being sold is $373,802.24, calculated by applying the 5.4% discount rate used by the Internal Revenue Service to value annuities. (Exh. A. § 4.7) The purchase price was calculated using a discount rate of 11.2%. If Payee did not sell the right to receive structured settlement payments but instead borrowed the net amount of $246,000.00 and paid that loan back in installments with each of the payments he is now selling, the equivalent interest rate would be 11.2%. (Id. § 4.8.) 

This information has been properly disclosed to Payee by way of the disclosure form in compliance with Insurance Code § 10136, as required by § 10139.5(a)(3). (Amended Petition, Exh. B.) Payee was advised in writing to seek independent professional advice, both legal and financial. (Ibid.) Payee chose not to seek an independent professional’s advice. (Amended Petition, Exh. E.) Thus, Petitioner has complied with the statutory disclosure requirements. (Ins. Code § 10139.5(a)(2).) 

The transfer agreement (Exh. A) also complies with Insurance Code §§ 10136 and 10138 as required by § 10139.5(a)(3). It does not contravene any applicable statute or order of any court or other governmental authority. (Ins. Code § 10139.5(a)(4).)  

Copies of the relevant portions of the annuity contract (Exh. F), qualified assignment agreement (Id.), and underlying structured settlement agreement (Exh. G) submitted as required by Ins. Code § 10139.5(f)(2)(E)-(F).

Information About Transferor 

Payee is 34 years old. (Declaration of Gilbert Becerra ISO Petition attached as Exh. C to Petition. ¶ 2).  

Payee resides at 44 Park Ave, Venice, CA, 90291 (¶ 1.)  

Payee has stated that he is married to Anna Maria Gudiel, age 36, who resides with him as a dependent as required by Insurance Code § 10139.5(c)(2). (¶ 3.) 

Payee has stated that he has one minor child, Gilbert Becerrada, Jr., age 4. (¶ 3.) The Court therefore finds that Payee has complied with section 10139.5(c)(3).

Payee has indicated that he is employed as a subcontractor for package delivery, and receives income of approximately $6,500 per month, plus $1,500 to $2,000 from his wife’s work as a take-out delivery driver. Payee has complied with Insurance Code § 10139.5(c)(4). (¶ 4.) 

Payee has stated that he has no child or spousal support obligations, as required by Insurance Code § 10139.5(c)(5). (¶ 3.) 

Payee has not previously attempted other transfers, as required by Insurance Code § 10139.5(c)(6). (¶¶ 11.) 

In sum, Payee has provided all information required by Insurance Code § 10139.5(c). 

Payee indicates how the proceeds would be used as required by Insurance Code § 10139.5(b)(2): He intends to use the proceeds to purchase ATMs and vending machines to start a business, to put forward a down payment on a home, and pay off approximately $20,000 in medical debt. (¶ 15.) He has indicated that he is not currently experiencing a financial hardship, as required by Insurance Code § 10139.5(b)(3). (¶ 4.)  

Payee has indicated that the periodic payments were not intended for necessary living expenses or medical expenses, as required by Insurance Code § 10139.5(b)(5)-(7). (¶¶ 6-7.) 

Given the foregoing, the Court finds that the transfer is fair, reasonable and in the best interest of Payee. (Insurance Code § 10139.5(a)(1) & (b)(1)-(15).)  The Payee understands the terms of the transfer agreement, including those set forth in the § 10136 disclosure statement, as required by Insurance Code § 10139.5(a)(5). In signing the California Disclosure Statement and in his declaration and affidavit in support of to the Petition, Payee has evidenced an understanding of the right to cancel and election not to cancel the transfer agreement, as required by Insurance Code § 10139.5(a)(6). 

Petitioner has, thus, met all the procedural requirements under the Insurance Code. Petitioner has also served a copy of the notice to all interested parties.

Accordingly, the petition for approval of transfer of structured settlement payment rights is GRANTED.

Moving party to give notice, unless waived. 

IT IS SO ORDERED.

Dated:  January 19, 2024                                ___________________________________

                                                                                    Theresa M. Traber

                                                                                    Judge of the Superior Court

            Any party may submit on the tentative ruling by contacting the courtroom via email at Smcdept47@lacourt.org by no later than 4:00 p.m. the day before the hearing. All interested parties must be copied on the email. It should be noted that if you submit on a tentative ruling the court will still conduct a hearing if any party appears. By submitting on the tentative you have, in essence, waived your right to be present at the hearing, and you should be aware that the court may not adopt the tentative, and may issue an order which modifies the tentative ruling in whole or in part.