Case Number: KS018107    Hearing Date: August 22, 2014    Dept: J

In Re Amanda Buff aka Amanda Sullivan (KS018107)

PETITION FOR APPROVAL FOR TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS

Petitioner: Peachtree Settlement Funding, LLC

Respondent: No opposition filed

POS: Moving OK

Petitioner Peachtree Settlement Funding, LLC petitions this court pursuant to Cal Ins Code §§ 10134 et seq. for approval of the transfer of the certain structured settlement payment rights of Amanda Buff aka Amanda Sullivan. (Petition, Exhibit A, Purchase Contract.)

Ms. Buff is transferring 1 payment of $25,000.00 due on February 12, 2017. (Petition ¶ 2.) If approved, Ms. Buff will receive $15,600.00 from this transaction. The future payment has a discounted present value equal to $23,579.27 which is calculated by applying the discount rate of 2.20% utilized by the Internal Revenue Service to value annuities in probate proceedings. The purchase price to be paid was calculated using a discount rate of 19.17%. (Id. at Exhibit B, California Disclosure Statement.)

Under Cal Ins. Code section 10139.5(a), a direct or indirect transfer of structured settlement payment rights from a payee to a transferee is not effective unless the transfer has been approved in advance by court order based on express written findings by the court that:

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 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 reasonably understands and does not wish to exercise the payee’s right to cancel the transfer agreement.

Ms. Buff is 31 years old and married. She has a husband, S. Sullivan, born 9/20/1979, and three children, B. Sullivan born 11/26/2011, and twins D. Sullivan and P. Sullivan born 1/22/14. Ms. Buff is unemployed, yet indicates that she is earning $3,500.00 per month, and she does not have any court orders or child support obligations. (Buff Decl. ¶ 8.)

Ms. Buff has completed a previous transaction on August 28, 2003, through the San Bernardino County Superior Court (Case No. RCV 073705), transferring one payment of $15,000.00 commencing on August 15, 2004 and one payment of $30,000.00 commencing on February 12, 2007 to Peachtree Settlement Funding, LLC. From the settlement, she received $27,420.00. (Id. ¶ 9.)

Ms. Buff has not attempted previous transactions involving her structured settlement payment that were denied, dismissed or withdrawn prior to a decision on the merits, within the past five years. (Id. ¶ 10.)

Ms. Buff represents that she is currently experiencing a financial hardship. If approved, she will use the money received form the proposed settlement to pay off several Pay Day loans. Ms. Buff currently owe Cash Call $5,000.00, speedy Cash $2,675.00, Net Credit $1,000.00 and AM Web loans $1,200.00. The interest rates on these loans are extremely high. Ms. Buff also owes $1,000.00 on her Discover card. Ms. Buff just lost her job. The remaining $4,725.00 will be used to take care of their living expenses while she looks for a new job. (Id. ¶ 11.)

The petition substantially complies with the requirements under Cal Ins. Code §§ 10134 et seq.:

• Ms. Buff was presented with a separate disclosure statement. (Petition, Exhibit B.)
• The petition is filed with a court in the county where Ms. Buff resides, County of Los Angeles. (Buff Decl. ¶ 1.)
• The petition is served all on interested parties. (Proof of Service filed on July 10, 2014.)
• The petition contains the following documents pursuant to Cal Ins. Code §10139.5(c)(2)
• A copy of the transferee’s current petition. (Petition.)
• A copy of the transfer agreement. (Petition, Exhibit A.)
• A listing of each of the payee’s dependents, together with each dependent’s age. (Buff Decl. ¶ 8.)
• A copy of the disclosure required in subdivision (b) of Section 10136. (Petition, Exhibit B.)
• A copy of the annuity contract. (Petition, Exhibit C.)
• Notification that any interested party is entitled to support, oppose, or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or by participating in the hearing. (Notice of Petition.)
• Notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed, which may not be less than 15 days after service of the transferee’s notice, in order to be considered by the court. (Notice of Petition.)
• Explanation of Expenses Deducted from the Purchase Price. (According to the Disclosure Notice, there are no expenses to be deducted from the purchase price.)

Although a copy of the underlying settlement agreement is not attached to the petition, Petitioner explains that it was not attached because the settlement agreement contains a confidentiality clause and that Petitioner will provide a copy if the court requests it. (Petition, Page 5, Footnote 1.) Petitioner is directed to submit a copy of the settlement agreement for the court’s review.

Further, the court would like to hear from Ms. Buff as to the source of her monthly income of $3,500.00. Ms. Buff represents that she is unemployed, but that she earns $3,500.00 per month. (See Buff Decl. ¶ 8.) The court would also like to know the monthly income of Ms. Buff’s husband.