Case Number: KS018004    Hearing Date: July 15, 2014    Dept: J

In Re L. Abbasi (KS018004)

PETITION FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT

Petitioner: Peachtreee Settlement Funding, LLC

Respondent: No opposition filed

POS: Moving OK

Petitioner Peachtree Settlement Funding, LLC petitions the court pursuant to Cal Ins Code §§ 10134 et seq. for approval of the transfer of the certain structured settlement payment rights of Lenette Abbasi (“Transferor” or “Ms. Abbasi”). (Petition, Exhibit A, Purchase Contract.) Ms. Abbasi is transferring 177 monthly payments of $2,906.54 each, beginning on July 1, 2014 and ending on March 1, 2029. (Petition ¶ 2.)

If approved, Ms. Abbasi will receive $323,000.00 from this transaction. The future payments have a discounted present value equal to $438,289.22 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 6.92%. (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. Abbasi is 40 years old and married. (Petition, Page 4, Line 12.) Ms. Abbasi has three minor children: (1) a son, M. Abbasi born 3/31/00, (2) a daughter, D. Abbasi born 8/9/04, and (3) a son, K. Abbasi, born 8/1/08. (Petition, Abbasi Decl. ¶ 8.) Ms. Abbasi is employed earning $2,100.00 per month and she does not have any court-ordered child support or maintenance obligations. (Ibid.)

Ms. Abassi has not completed a previous transaction involving her structured settlement payments. (Petition, Abbasi Decl. ¶ 9.)

Ms. Abassi believes it is in her best interest to enter into the transaction contemplated in the Purchase Agreement. (Petition, Abbasi Decl. ¶ 4.) Ms. Abassi is currently experiencing a financial hardship. (Id. ¶ 11.) If approved, she will use the money received from the proposed settlement to pay off the loan balance on their home. (Ibid.) They are also planning to do remodeling on their home, such as landscaping, and the interior of their home including their bathrooms and kitchen. (Ibid.) They are also planning to pay off the remaining balance owed on their car. (Ibid.) With the remainder of the money, they are going to pay off bills that are in collection and also pay off medical bills. (Ibid.)

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

• Ms. Abbasi was presented with a separate disclosure statement. (Petition, Exhibit B.)
• The petition is filed with a court in the county where Ms. Abbasi resides, in West Covina, County of Los Angeles. (Abbasi Decl. ¶ 1.)
• The petition is served all on interested parties. (Proof of Service filed on May 15, 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. (Abbasi Decl. ¶ 8.)
• A copy of the disclosure required in subdivision (b) of Section 10136. (Petition, Exhibit B.)
• 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 the Petition does not attach a copy of the annuity contract, a letter from the owner of the Structured Settlement confirming the subject structured settlement annuity is attached to the Petition. (Petition, Exh. C.) While the Petition also does not attach a copy of the underlying structured settlement agreement, Ms. Abassi submits her affidavit attesting that she has attempted to locate the settlement agreement but has been unsuccessful. (Id., Exh. D.)

The petition is granted.