Case Number: ES018008    Hearing Date: August 22, 2014    Dept: A

Catlina Structured Funding v Haltiner

PETITION FOR APPROVAL OF TRANSFER OF PAYMENT RIGHTS UNDER A STRUCTURED SETTLEMENT

Calendar: 19
Case No: ES017793
Date: 5/16/14

MP: Petitioner, Catalina Structured Funding, Inc.
RP: None

RELIEF REQUESTED:
Order approving transfer of structured settlement payments from Naomi Haltiner to Catalina Structured Funding, Inc.

DISCUSSION:
This Petition was filed by Catalina Structured Funding Inc. in order to obtain approval of a transfer of Naomi Haltiner’s rights to obtain payments under a structured settlement. Naomi Haltiner received these rights under a settlement agreement that resolved a personal injury claim.

This hearing concerns the request of Catalina Structured Funding, Inc. for approval of a transfer of Ms. Haltiner’s right to future payments totaling $122,389.52. The net present value of the right to the future payments is $103,655.51. Under the agreement with Catalina Structured Funding, Inc., Ms. Haltiner will receive a payment of $70,111.91 in exchange for transferring her right to the future payments.

An initial problem is that there is no proof of service for Naomi Haltiner. The Petitioner filed a proof of service on July 29, 2014 and an amended proof of service on August 4, 2014. A review of the two proofs of service reveals that it includes the name of Naomi Haltiner; however, the proofs of service do not identify an address for Naomi Haltiner to demonstrate that the Petitioner served notice of the hearing and a copy of the petition on the correct address for Naomi Haltiner.
Generally, the Petitioner files an acknowledgement of receipt to demonstrate that the seller of the right to the future payment received notice of the hearing and a copy of the petition. A review of the Court file reveals no acknowledgement of receipt.
Accordingly, at the hearing, the Court will make an inquiry to determine whether the Petitioner has a proof of service to establish that Naomi Haltiner received notice of this hearing and a copy of the Petition. If the Petitioner cannot provide a proof of service, then the Court will continue the hearing.

A second issue is that the Petition lacks a declaration from Naomi Haltiner to provide the necessary facts needed to find that the Petition complies with Insurance Code section 10139.5.

California regulates the transfers of structured settlement rights with Insurance Code sections 10134 to 10139.5. Under Insurance Code section 10139.5, a transfer of structured settlement payment rights is not effective unless the transfer has been approved in advance in a final court order. In order to approve the transfer, the Court must make the following findings:

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 that advice in writing.
3) The transferee has provided the payee with a disclosure form that complies with Insurance Code section 10136 and the transfer agreement complies with Insurance Code 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 Insurance Code section 10136.
6) The payee reasonably understands and does not wish to exercise the payee’s right to cancel the transfer agreement.

A review of the petition reveals no declaration from Naomi Haltiner. The Court has no facts from Naomi Haltiner to establish that the transfer is in her best interest, to identify her dependents, to show that she received advice in writing, or to demonstrate that she understands the terms of the agreement. The Court is unable make the findings required under Insurance Code section 10139.5.

Accordingly, the Court may need to continue the hearing and order the Petitioner to file a proof of service to demonstrate that Naomi Haltiner received a copy of the Petition and notice of the hearing. Further, the Court will order the Petitioner to submit a declaration from Naomi Haltiner that includes the facts needed to make the findings under Insurance Code section 10139.5.

RULING:
Continue hearing unless deficiencies are cleared at or prior to hearing.