Case Number: ES017943    Hearing Date: July 25, 2014    Dept: NCB

11. ES017943
IN THE MATTER OF DEAMIL ALBERTO AGUILAR
Petition for Approval of Transfer of Structured Settlement

This Petition was filed by Allstate Settlement Corp. in order to obtain approval of a transfer of Deamil Aguilar’s rights to obtain payments under a structured settlement. Deamil Aguilar received these rights because when Ana Rodriguez died because he was a beneficiary on her annuity. Ms. Rodriguez was receiving payments under a structured settlement that resolved a claim in 2007. When Ms. Rodriguez passed away, Deamil Aguilar obtained the right to the payments under the annuity.

This hearing concerns the request of Allstate Settlement Corp. for approval of Deamil Aguilar transferring a right to future payments totaling $21,780. The net present value of the right to the future payments is $19,940.37. Deamil Aguilar will receive a payment of $15,984.44 in exchange for transferring his right to the future payments.

An initial defect in the Petition is that there is no evidence that the Petitioner served the Petition or notice of this hearing on Deamil Aguilar. Generally, the Petitioner files an acknowledgement of receipt before the hearing. A review of the Court file reveals no acknowledgement of receipt and no proof of service that demonstrates that Deamil Aguilar was served with the Petition.
Accordingly, the Court will continue the hearing until the Petitioner files evidence that Deamil Aguilar received notice of the Petition and the hearing on the Petition.

The following applies if at the hearing the Petitioner files evidence that Deamil Aguilar had notice of this hearing.

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) Deamil Aguilar believes it is in his best interest to enter into this transaction because he seeks to use the money to pay for his son’s tuition at Loyola High School. Mr. Aguilar states that he has two dependents: his wife, Lilbeth Aguilar, and his son, Deamil Aguilar, Jr. (Aguilar decl., attached in exhibit J; paragraphs 11 to 17);
2) Deamil Aguilar has been advised in writing to seek independent professional advice (Aguilar decl., paragraph 10; see copy of notice signed by Mr. Aguilar in exhibit L to Petition);
3) Allstate Settlement Corp. provided a disclosure form that complies with Insurance Code section 10136 (exhibit I to Petition) and a transfer agreement that complies with Insurance Code sections 10136 and 10138 (exhibit G to Petition);
4) the transfer will not contravene any applicable statute or known order of a Court or other government authority; and
5) Deamil Aguilar understands the terms of the transfer agreement (Aguilar decl., paragraph 9).

This review of the Petition reveals that if proof of service is filed, the Petition includes the evidence necessary to make the findings required under Insurance Code section 10139.5. Since the evidence establishes that Deamil Aguilar 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, once proof of service is filed the Court will grant the Petition and approve the transfer of Mr. Aguilar’s right to future payments to the Petitioner.