Case Number: ES017645 Hearing Date: May 02, 2014 Dept: B

ATTENTION: THE COURT WILL BE DARK ON MAY 2, 2014.

TO ALL COUNSEL AND UNREPRESENTED PARTIES:
PLEASE REVIEW THE TENTATIVES BELOW, AND ADVISE THE CLERK OF THE COURT AT (818) 557-3472 WHETHER YOU SUBMIT TO THE TENTATIVE OR WISH TO SCHEDULE ANOTHER HEARING DATE. IF YOU WISH TO SCHEDULE ANOTHER HEARING DATE, PLEASE CONTACT ALL OPPOSING PARTIES AND AGREE ON A HEARING DATE OF MAY 16, MAY 23, OR MAY 30, AND INFORM THE CLERK OF THE SELECTED DATE.

Petition for Approval for Transfer of Structured Settlement Rights

This Petition was filed by Catalina Structured Funding Inc. in order to obtain approval of a transfer of Garry Hogenbirk’s rights to obtain payments under a structured settlement. Garry Hogenbirk received these rights under a 1997 settlement agreement that resolved a personal injury claim that occurred when he was hit by a power line. Mr. Hogenbirk receives payments through an annuity. Mr. Hogenbirk is now 50 years old.

This hearing concerns the request of Catalina Structured Funding, Inc. for approval of Mr. Hogenbirk transferring a right to future payments totaling $1,300,986.55. The net present value of the right to the future payments is $951,308.46. Garry Hogenbirk will receive a payment of $250,000 in exchange for transferring his right to the future payments.

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 indicates the following:

1) Garry Hogenbirk believes it is in his best interest to enter into this transaction because he seeks to use the money to renovate a property in Colorado for use as a bar and restaurant business and to retain an attorney to assist him with a suit against the bank from which he purchased the property. Mr. Hogenbirk has no dependents (Hogenbirk decl., attached without a tab to the Petition; paragraphs 5 to 9);
2) Garry Hogenbirk has been advised in writing to seek independent professional advice (Hogenbirk decl., paragraph 13; see copy of notice signed by Mr. Hogenbirk in exhibit B to Petition);
3) Catalina Structured Funding, Inc. provided a disclosure form that complies with Insurance Code section 10136 (exhibit B to Petition) and a transfer agreement that complies with Insurance Code sections 10136 and 10138 (exhibit A to Petition);
4) the transfer will not contravene any applicable statute or known order of a Court or other government authority; and
5) Garry Hogenbirk understands the terms of the transfer agreement (Hogenbirk decl., paragraph 15).

This review of the Petition reveals that it includes the evidence necessary to make the findings required under Insurance Code section 10139.5. Since the evidence establishes that Garry Hogenbirk has been advised of his rights, that he understands the terms of the transfer agreement, and that he believes it is in his best interests, the Court grants the Petition and approves the transfer of Mr. Hogenbirk’s right to future payments to the Petitioner.