Judge: Yolanda Orozco, Case: 22STCP02379, Date: 2022-08-18 Tentative Ruling
Case Number: 22STCP02379 Hearing Date: August 18, 2022 Dept: 31
PETITION FOR
APPROVAL OF TRANSFER OF
STRUCTURED SETTLEMENT PAYMENT RIGHTS IS GRANTED
Background
Petitioner Stone Street Obligations, LLC moves the Court for approval of a transfer of structured settlement payment rights from named payee Joshua McIntyre (“McIntyre” or “payee”).
On August 04, 2022, the hearing was continued so that the petitioner could provide Payee’s address pursuant to Insurance Code Section 10139.5(c) and so that Payee could provide a summary outlining the payee’s reasons for completing prior transfers of structured settlement payments. (Min. Or. 08/09/22.)
Legal Standard
This Petition is governed by Insurance Code sections 10134–10139.5. (See 321 Henderson Receivables Origination LLC v. Sioteco (2009) 173 Cal.App.4th 1059, 1066.) 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 and will not contravene other applicable law, and the court has reviewed and approved the transfer as provided in Section 10139.5.
Pursuant to Insurance Code section 10139.5(a), the Court must make the following express findings as to a transfer of structured settlement payment rights:
(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 receipt of that advice in writing.
(3) 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 reasonably 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.
The
transfer agreement is effective only upon approval in a final court order.
(Ins. Code, § 10139.5(a).)
When determining whether the proposed transfer
should be approved, including whether the transfer is fair, reasonable, and in
the payee’s best interest, the Court shall consider the totality of the
circumstances, including, but not limited to:
(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 the future periodic payments were
intended to pay for future medical care of the payee related to the incident
that was the subject of the settlement;
(6)
whether the payee has
other means of income or support sufficient to meet the payee’s future
financial obligations for support of payee’s dependents, such as child support;
(7)
whether there were
previous transactions involving payee’s structured settlement payments; and
(8)
whether the payee and
his or her dependents are facing a hardship situation. (Ins. Code, § 10139.5,
subd. (b).
Procedurally, Insurance Code section 10136, subdivision (b) provides that 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. The Court-approval process requires the transferee to file a petition in the county in which the transferor resides for approval of the transfer. (Ins. Code, § 10139.5, subd. (f)(1).) Further, at the time of filing such a petition, the transferee shall file a copy of the petition with the California Attorney General. (Ins. Code, § 10139.) Lastly, the Court shall retain continuing jurisdiction to interpret and monitor the implementation of the transfer agreement as justice requires. (Id. § 10139.5, subd. (i).)
Discussion
Although Petitioner did not provide Payee’s address, it can be found in the Service List attached to Payee’s Supplemental Declaration.
Therefore, the Court is satisfied with Petitioner's compliance with the requirements of Insurance Code sections 10134–10139.5.
The Petition is GRANTED.
Petitioner to give notice.
The parties are
strongly encouraged to attend all scheduled hearings virtually or by audio.
Effective July 20, 2020, all matters will be scheduled virtually and/or with
audio through the Court’s LACourtConnect technology. The parties are strongly
encouraged to use LACourtConnect for all their matters. All masking protocols
will be observed at the Courthouse and in the courtrooms.