Judge: Theresa M. Traber, Case: 25STCP00615, Date: 2025-03-27 Tentative Ruling

Case Number: 25STCP00615    Hearing Date: March 27, 2025    Dept: 47

Tentative Ruling

Judge Theresa M. Traber, Department 47

HEARING DATE:     March 27, 2025          TRIAL DATE: NOT SET

CASE:                         Peachtree Settlement Funding, LLC v. RPC.

CASE NO.:                 25STCP00615           

PETITION FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS

MOVING PARTY:               Petitioner Peachtree Settlement Funding, LLC

RESPONDING PARTY(S): No response on eCourt as of March 24, 2025

CASE HISTORY:

·         04/28/23: Petition filed.

·         05/19/23: First 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, Payee Patrick Chammas became entitled to certain structured settlement payments.

Patrick Chammas, as Payee, and Petitioner Peachtree Settlement Funding LLC, as Assignee, have entered into a Structured Settlement Payments Purchase Agreement, under which Payee is to sell future payments totaling $1,200,000.00 in exchange for a purchase price of $1,004,278.17 (Petition Amended Exh. B.)  

The discounted present value of the amount being sold is $1,076,239.00, calculated by applying the 5.40% discount rate used by the Internal Revenue Service to value annuities in probate proceedings. The purchase price was calculated using a discount rate of 8.99%. If Payee did not sell the right to receive structured settlement payments but instead borrowed the net amount of $1,004,278.17 and paid that loan back in installments with each of the payments he is now selling, the equivalent interest rate would be 8.99%. (Ibid.) 

All of 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). (Petition Amended 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 D.) Thus, Petitioner has complied with the statutory disclosure requirements. (Ins. Code § 10139.5(a)(2).) 

The transfer agreement (Notice of Increased Purchase Price Re: Petition) 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 qualified assignment agreement and underlying structured settlement agreement were as required by Ins. Code § 10139.5(f)(2)(F)-(G). (Amended Petition Exhs. C-D.) A copy of the annuity contract has not been provided. However, Payee provided an affidavit stating that he has not been able to locate a copy of the annuity contract has no record of those documents. (Amended Petition  Exh. C.) This showing is sufficient to establish that reasonable efforts were made to locate these documents, as required by Ins. Code § 10139.5(f)(2)(E).

Information About Transferor 

Payee is 37 years old. (Amended Declaration of Patrick Chammas ISO Amended Petition. ¶ 1).  

Payee states that his address is 1310 Charmont Road, La Verne, CA 91750. (Id. ¶ 8.).

Payee has stated his marital status (unmarried) as required by Insurance Code § 10139.5(c)(2). (Id.) 

Payee has stated that he has no minor children as required by Insurance Code § 10139.5(c)(3). (Chammas Decl. ¶ 8.)

Payee has indicated the amount and source of his monthly income as required by Insurance Code § 10139.5(c)(4). (¶ 8.) 

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

Payee has provided information regarding previous transfers, as required by Insurance Code § 10139.5(c)(6). (Id. ¶ 9.) 

In sum, Payee has provided all of the 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 funds to purchase the house adjacent to his mother and grandmother’s home, where he currently resides, so that he may have his own abode while remaining close to his family. (¶ 11.)  He has not expressly indicated whether he is currently experiencing a financial difficulties as contemplated by Insurance Code § 10139.5(b)(3).  

Payee has indicated that the periodic payments were not intended for necessary living expenses nor 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). 

Thus, Petitioner has met all the procedural requirements under the Insurance Code. The Petitioner has also served a copy of the notice to all interested parties and the Attorney General.  

Accordingly, the petition for approval of structured settlement payments is GRANTED.

Moving party to give notice, unless waived. 

IT IS SO ORDERED.

Dated: March 27, 2025                                   ___________________________________

                                                                                    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.