Judge William A. Crowfoot, Case Number: 23AHCP00505, Date: 2024-01-03 Tentative Ruling

Judge: William A. Crowfoot, Case: 23AHCP00505, Date: 2024-01-03 Tentative Ruling

Petitioner Transamerica Life Insurance Company (“Petitioner”) petitions for the approval of the transfer of certain structured settlement payment rights from payee D. Ovando (“Payee”) to Petitioner pursuant to Insurance Code section 10134, subd. (c)(1). (Pet., at p. 1.)

A petition for approval of transfer of a structured settlement payment is governed by Insurance Code sections 10134 et seq. Before granting such a petition, the court must find the transfer “fair and reasonable and in the best interest of the payee, taking into account the welfare and support of his or her dependents” and that the transfer “complies with the requirements of this article and will not contravene other applicable law, and the court has reviewed and approved the transfer as provided in Section 10139.5.” (Ins. Code, § 10137.) In determining whether the transfer is fair, reasonable, and in the payee’s best interest the court must take into consideration the totality of the circumstances. It further lists fifteen independent considerations which include but are not limited to, the preference of the payee, the purpose of the transfer, the terms of the transaction, the purpose of the any future periodic payments that are the subject of the proposed transfer and whether the payee has other means of income, etc. (Ins. Code, § 10139.5, subd. (b).)

According to the petition, the transfer agreement provides that Payee will sell her future payments totaling $386,250.00 (3 annual payments of $60,000 and one lump sum payment of $206,250 due in 2027) in exchange for the present purchase price of $356,862.02 consisting of 41 monthly payments of $8,703.95. The petition includes the necessary disclosures and omits any prohibited provisions. (See Ins. Code, §§ 10136 [Required disclosures for transfers of structured settlement payment rights; notice of proposed transfers; transfer agreement requirements; cancellation]; 10138 [prohibited provisions])

Payee submits her declaration in support of the transfer in which she declares that the present transaction is in her best interest. (Ovando Decl., ¶ 14.) She has three daughters and is currently unemployed; the proceeds under this transfer will be used to secure guaranteed monthly income for the next 5 years. (Id., ¶¶ 12-13, 15.) She is not delinquent in the payment of taxes or any payments required pursuant to a restitution or child support order. (Id., ¶ 19.) She has not previously attempted to transfer payments under her annuity. (Id., ¶ 18.) Payee declined independent legal or financial advice, but also states that she understands the terms of the transfer agreement. (Ex. H; Ovando Decl., ¶ 10.)

Having considered the petition and Payee’s declaration, the Court finds that the transfer is in Payee’s best interest, Payee has been advised in writing by Petitioner to seek independent professional advice regarding the transfer and has knowingly waived, in writing, the opportunity to receive the advice, and Petitioner has complied with all applicable notice requirements. The Court additionally finds that the transfer does not contravene any applicable statute or order of any court or other government authority. Last, based on the declaration of Payee, the Court finds that Payee understands the terms of the transfer agreement, and does not wish to exercise her right to cancel the agreement.

William A. Crowfoot

Judge of the Superior Court

Parties who intend to submit on this tentative must send an email to the Court at ALHDEPT3@lacourt.org indicating intention to submit on the tentative as directed by the instructions provided on the court website at www.lacourt.org. Please be advised that if you submit on the tentative and elect not to appear at the hearing, the opposing party may nevertheless appear at the hearing and argue the matter. Unless you receive a submission from all other parties in the matter, you should assume that others might appear at the hearing to argue. If the Court does not receive emails from the parties indicating submission on this tentative ruling and there are no appearances at the hearing, the Court may, at its discretion, adopt the tentative as the final order or place the motion off calendar.