Case Number: ES020665??? Hearing Date: July 29, 2016??? Dept: NCB

17. ES020665
CATALINA STRUCTURED FUNDING, INC. v KENRICK RHABURN
Petition for Transfer of Structured Settlement

This Petition was filed by Catalina Structured Funding Inc. in order to obtain approval of a transfer of Kenrick Rhaburn and Carolyn Rhaburn?s rights to obtain payments under a structured settlement. Kenrick Rhaburn and Carolyn Rhaburn received these rights under a settlement agreement that resolved a wrongful death claim for the death of their daughter.

This hearing concerns the request of Catalina Structured Funding, Inc. for approval of Kenrick Rhaburn and Carolyn Rhaburn?s transfer of a right to future payments totaling $58,000. The net present value of the right to the future payments is $52,753.83. Kenrick Rhaburn and Carolyn Rhaburn will receive a payment of $32,250 in exchange for transferring their right to the future payments.

A review of the papers reveals that the petition and notice of this hearing was served on Kenrick Rhaburn and Carolyn Rhaburn.

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) Kenrick Rhaburn and Carolyn Rhaburn believe it is in their best interest to enter into this transaction because they seeks to use the money to expand their business. Kenrick Rhaburn and Carolyn Rhaburn have no dependents and do not have any court-ordered child support payments (exhibit C to Petition, Rhaburn decl., paragraphs 4, 5, and 7);
2) Kenrick Rhaburn and Carolyn Rhaburn have been advised in writing to seek independent professional advice (Rhaburn decl., paragraph 11; see copy of notice signed by Kenrick Rhaburn and Carolyn Rhaburn in exhibit B to Petition);
3) the Petitioner 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) Kenrick Rhaburn and Carolyn Rhaburn understand the terms of the transfer agreement (Rhaburn decl., paragraph 13).

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 Kenrick Rhaburn and Carolyn Rhaburn have been advised of their rights, that they understand the terms of the transfer agreement, and that they believe it is in their best interests, the Court grants the Petition and approves the transfer of the right to future payments of Kenrick Rhaburn and Carolyn Rhaburn to the Petitioner.