Preview
1 Martin L. Shives, Esq. (SBN 123631)
SUMMERS & SHIVES, A.P.C.
2 1180 Rosecrans Street, #220
San Diego, CA 92106-2660
3 Telephone: (858) 874-1800
Facsimile: (858) 874-1888
4 martinshives@summers-shives.com
5 Attorneys for Specially Appearing Interested Party
BERKSHIRE HATHAWAY LIFE INSURANCE COMPANY OF NEBRASKA
6
7
8 SUPERIOR COURT OF THE STATE OF CALIFORNIA
9 FOR THE COUNTY OF SAN MATEO
10
11 IN RE: Petition of: ) CASE NO: 24-CIV-00762
)
12 CANYON LAKES TITLE, LLC, ) UNLIMITED JURISDICTION
)
13 Petitioner ) DECLARATION OF BRENNAN S.
) NEVILLE IN SUPPORT OF
14 ) RESPONSE OF SPECIALLY
) APPEARING INTERESTED PARTY
15 (Real Party in Interest D.S.) ) BERKSHIRE HATHAWAY LIFE
[aka DE’ANGELO SALONGA] ) INSURANCE COMPANY OF
16 ) NEBRASKA TO PETITION AND
) FIRST AMENDED PETITION FOR
17 ) APPROVAL FOR TRANSFER OF
) PAYMENT RIGHTS [BY AND
18 ) BETWEEN DE’ANGELO SALONGA
) AND CANYON LAKES TITLE, LLC,
19 ) PURSUANT TO CALIFORNIA
) INSURANCE CODE §§ 10134, ET SEQ.]
20 )
) Date: April 26, 2024
21 ) Time: 9:00 a.m.
) Dept: 24
22 __________________________________ )
23 I, Brennan S. Neville, declare:
24 1. I am Associate General Counsel and Assistant Secretary for Berkshire Hathaway
25 Life Insurance Company of Nebraska (“BHLN”) and BHG Structured Settlements, Inc.
26 (“BHG”). In addition to my positions with BHLN and BHG, I am Vice President of BIFCO,
27 LLC (“BIFCO”), and am familiar with its Hardship Exchange Program.
28 ////
Page 1
CASE NO. 24-CIV-00762 - NEVILLE DECLARATION IN SUPPORT OF RESPONSE OF BERKSHIRE HATHAWAY
LIFE TO CANYON LAKES’ PETITIONS FOR TRANSFER OF STRUCTURED SETTLEMENT PAYMENTS
1 2. In connection with my positions with BHLN and BHG, I am familiar with the
2 processes and procedures employed in connection with structured settlement transfers relating
3 to annuity contracts issued by BHLN and owned by BHG. I have reviewed and am familiar
4 with the file concerning the structured settlement established for De’Angelo Lawrence Rebucas
5 Salonga (“Mr. Salonga”) who, I am informed and believe, is the “D.S.” and “De’Angelo
6 Salonga” referenced in the Petition.
7 3. Pursuant to an annuity contract, No. BN-17-17743 (“the Contract”), owned by
8 BHG and issued by BHLN in conjunction with resolving his personal injury claim, BHLN
9 became obligated to make the following deferred lump sum payments to Mr. Salonga:
10 Payment Payment
Date Amount
11
November 3, 2023 $ 5,000.00 (Five Thousand Dollars and Zero Cents)
12 November 3, 2026 $ 5,000.00 (Five Thousand Dollars and Zero Cents)
November 3, 2028 $ 5,000.00 (Five Thousand Dollars and Zero Cents)
13 November 3, 2030 $ 50,000.00 (Fifty Thousand Dollars and Zero Cents)
November 3, 2035 $103,075.00 (One Hundred Three Thousand Seventy-
14 Five Dollars and Zero Cents)
15 The payments due Mr. Salonga under the Contract have a total nominal value of
16 $168,075.00. No copy of the annuity contract was attached to the Petition. Therefore, a
17 complete copy of the Contract is attached as Exhibit “A” hereto.
18 4. The Contract was issued on October 3, 2017.
19 5. BHLN paid Mr. Salonga the first $5,000.00 lump sum payment November 3,
20 2023.
21 6. I am informed and believe, and on that basis allege, that Canyon Lakes seeks
22 approval of a transfer pursuant to a Purchase, Sale, and Transfer Agreement (“Transfer
23 Agreement”) executed by Mr. Salonga on February 4, 2024 (Exhibit “A” to the Petition). As
24 outlined in Schedule “A” to Exhibit “A” of the Petition (the Transfer Agreement), Mr. Salonga
25 has agreed to transfer to Canyon Lakes the entirety of the $163,075.00 in future payments
26 remaining under the Contract. In exchange for these future payments, he would receive an
27 immediate payment of $50,483.52. Canyon Lakes asserts it used an ADR of 12.77% to
28 ////
Page 2
CASE NO. 24-CIV-00762 - NEVILLE DECLARATION IN SUPPORT OF RESPONSE OF BERKSHIRE HATHAWAY
LIFE TO CANYON LAKES’ PETITIONS FOR TRANSFER OF STRUCTURED SETTLEMENT PAYMENTS
1 calculate the purchase price. (See, “Disclosure Notice Required by Law,” California version,
2 dated January 25, 2024, Exhibit “B” to the Petition).
3 7. I am informed and believe, and on that basis allege, that Canyon Lakes is a
4 subsidiary, assignee, or otherwise affiliated with Lion Grace Capital (“Lion Grace”). I am
5 further informed and believe that Lion Grace is engaged in the business of purchasing structured
6 settlement payment rights.
7 8. In BHLN’s experience, Lion Grace and its affiliates (including Canyon Lakes)
8 frequently fail to file payee declarations with their initial transfer petitions and only file them,
9 if at all, after BHLN has filed a response.
10 9. I am informed and believe, and on that basis allege that, under the Transfer Act,
11 Canyon Lakes is required to pay the first $1,500.00 towards the cost of independent professional
12 advice that can help Mr. Salonga to evaluate the transaction. I am further informed and believe
13 that Mr. Salonga has waived his right to consult an independent professional adviser in
14 connection with the instant transaction (see, February 4, 2024 Statement of Professional
15 Representation waiver, Exhibit “C” to the Petition).
16 10. In at least twenty previous unrelated transfer cases in several states, many of
17 which were filed by Lion Grace entities, a purportedly independent professional advisor was
18 retained shortly before the hearing, purportedly to advise the payees, nearly all of whom had
19 previously waived their right to obtain such advice as to their transfer. This advisor uniformly
20 discourages payees from contracting with BIFCO and, instead, encourages them to pursue
21 transactions with the original factoring companies (or their affiliates) even when the terms were
22 worse for the payee.
23 11. Effective January 1, 2017, BIFCO, a company affiliated with BHLN and with
24 BHG, implemented a “Hardship Exchange Program” (or the “Program”) for the benefit of
25 existing BHLN annuity payees in order to provide them liquidity when facing an unanticipated
26 change in circumstances since entering into their structured settlement.
27 ////
28 ////
Page 3
CASE NO. 24-CIV-00762 - NEVILLE DECLARATION IN SUPPORT OF RESPONSE OF BERKSHIRE HATHAWAY
LIFE TO CANYON LAKES’ PETITIONS FOR TRANSFER OF STRUCTURED SETTLEMENT PAYMENTS
1 12. As set forth below, if this Court concludes a transfer of future payments is in the
2 best interests of Mr. Salonga, the BIFCO Program, as outlined below, would permit him to
3 receive substantially more from selling the same future payments or, in the alternative, permit
4 him to receive the same immediate amount but transfer a substantially smaller portion of the
5 future payments.
6 13. BIFCO does not actively market or solicit payees concerning the Program. The
7 BIFCO Program is offered as an alternative for BHLN payees (it is not available to the general
8 public) and could be helpful to Mr. Solanga. The Program uses an ADR which often (as here)
9 is significantly less than those utilized by factoring companies, such as Canyon Lakes, that are
10 in the business of purchasing annuity payments. Since starting its Hardship Program, BIFCO
11 has completed approximately 174 court-approved transfers involving structured settlement
12 payments made under contracts issued by BHLN or its affiliates.
13 14. For such payees, BIFCO will contract to purchase future payments at an annual
14 discount rate of 6.5% plus a $1,000.00 administrative charge. These transactions are made
15 within the scope of 26 U.S.C. § 5891 and applicable state law governing the transfer of
16 structured settlement payment rights, including the Transfer Act.
17 15. If BIFCO were to contract to purchase from Mr. Salonga the same $163,975.00
18 in future payments at issue in this Petition, and using the current hearing date of April 26, 2024,
19 as a measuring date, instead of the $50,483.82 offered by Canyon Lakes, BIFCO could offer
20 him $90,081.62 (a difference of $39,598.10) at an effective ADR of 6.73%.
21 16. Alternatively, BIFCO could pay Mr. Salonga the same $50,483.82 by purchasing
22 a prorated share of the same payments, totaling $92,188.49 (allowing him to retain $71,797.51
23 in future payments on the schedule set forth in the Contract). BIFCO could present other
24 scenarios for Mr. Salonga to consider, as well. BIFCO encourages payees to consider a smaller
25 transaction when possible if this will allow the payees to address his or her immediate needs
26 and still preserve substantial payments for the future.
27 ////
28 ////
Page 4
CASE NO. 24-CIV-00762 - NEVILLE DECLARATION IN SUPPORT OF RESPONSE OF BERKSHIRE HATHAWAY
LIFE TO CANYON LAKES’ PETITIONS FOR TRANSFER OF STRUCTURED SETTLEMENT PAYMENTS
1 17. If Mr. Salonga is willing to pursue a sale to BIFCO and cooperate in doing so, and
2 if this Court finds a transfer to be in his best interests under the Transfer Act, BIFCO will enter
3 into the transaction with him. Any transaction would require him to contact BIFCO and
4 complete a brief information form and provide limited documentation, at which point BIFCO
5 would provide a disclosure statement and transfer agreement. Further, any potential transaction
6 between Mr. Salonga and BIFCO would be subject to the approval of a court of competent
7 jurisdiction and the attendant “best interests” determination required by the Transfer Act.
8 18. BIFCO would, at its own expense, prepare and file the petition seeking this
9 Court’s approval of the transaction. Mr. Salonga would not be assessed any charges or fees
10 beyond the $1,000.00 administrative charge already factored into the purchase price and
11 charged only if the transfer is completed. Also, Mr. Salonga would not be assessed any charges
12 or fees if he elected not to pursue the transaction or if the transaction failed to receive court
13 approval.
14 19. As stated above, I am informed and believe that, pursuant to California law, Mr.
15 Salonga has the right to obtain independent professional advice and has waived that right in
16 connection with the Canyon Lakes transfer. If Mr. Salonga entered in to a BIFCO transfer,
17 BIFCO would urge him to seek independent professional advice of which BIFCO would pay
18 up to $1,500.00 of fees he incurs in obtaining such advice.
19 20. BIFCO is not a bargaining competitor of the factoring companies. Rather, its
20 6.5% ADR and $1,000.00 administrative charge are fixed and non-negotiable. If Canyon Lakes
21 wants to reduce its ADR for the benefit of the payee, BIFCO would neither object to the amount
22 nor submit a competing bid. BIFCO’s motivation is to assist the Court (and Mr. Salonga), not
23 to profit from any transaction with Mr. Salonga pursuant to the Hardship Exchange Program.
24 BHLN’s purpose is to assist the Court in protecting the interests of Mr. Salonga. If a transfer
25 is consummated, it does not change BHLN’s payment schedule. BHLN simply changes the
26 name of the payee for each of the payments when they become due.
27 ////
28 ////
Page 5
CASE NO. 24-CIV-00762 - NEVILLE DECLARATION IN SUPPORT OF RESPONSE OF BERKSHIRE HATHAWAY
LIFE TO CANYON LAKES’ PETITIONS FOR TRANSFER OF STRUCTURED SETTLEMENT PAYMENTS
, KDYH SHUVRQDO NQRZOHGJH RI WKH IDFWV FRQWDLQHG LQ WKLV GHFODUDWLRQ FRQFHUQLQJ
WKH &RQWUDFW LVVXHG WR 0U 6DORQJD DQG LI FDOOHG DV D ZLWQHVV FRXOG FRPSHWHQWO\ WHVWLI\ WR WKHP
$V WR WKRVH PDWWHUV VWDWHG RQ LQIRUPDWLRQ DQG EHOLHI , DP LQIRUPHG DQG EHOLHYH WKHP WR EH WUXH
, GHFODUH XQGHU SHQDOW\ RI SHUMXU\ XQGHU WKH ODZV RI WKH 6WDWH RI &DOLIRUQLD WKDW
WKH IRUHJRLQJ LV WUXH DQG FRUUHFW Nashville, Tennessee
09 GD\ RI $SULO DW 2PDKD 1HEUDVND
([HFXWHG WKLV BBBB
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
%UHQQDQ 6 1HYLOOH
3DJH
&$6( 12 &,9 1(9,//( '(&/$5$7,21 ,1 6833257 2) 5(63216( 2) %(5.6+,5( +$7+$:$<
/,)( 72 &$1<21 /$.(6 3(7,7,216 )25 75$16)(5 2) 6758&785(' 6(77/(0(17 3$<0(176
SUP ERIOR COURT, COUNTY OF SAN MATEO FOR COURT USE ON L Y
2
TITLE OF CASE (Abbreviated)
3 In Re Petition of: Canyon Lakes Title, LLC
A ITORNEY(S) NA~IE AND ADDRESS TELEPHONE
4 M art in L . Shives, Esq. (SBN: 12363 1) (85 8) 874-1 800
SUMMERS & SHIVES, A.P.C. FAX : (85 8) 874-1888
5 I 180 Rosecrans Street, # 220
San Diego, California 92 106-2660
6
ATr0RNEY(S) FOR: HEARING: DATE-TIME-DEPT CASE NUM BER
7 Specially A ppearing Interested Party
BERKSHIRE HATH AWAY LIFE 24-CIV -00762
8 INSU RAN C E COMPAN Y OF
N EBRASK A
9
DEC LARATION O F SERVICE
10 [Code of Civil Procedure §§ IO13, el seq. and 201 5.5]
1I I, th e undersigned, declare:
12 I am, and was at the time o f service of the papers herein referred to, over the age of 18 y ears, and not a
party to this action. M y business address is 1180 Rosecrans Street,# 220, San D iego, Cal ifornia 92 106-2660.
13
I served the following document(s):
14
DECLARATION OF BRENN AN S. NEVILLE IN SUPPORT OF R ESPON SE OF
15 SPEC IALLY APPE ARING I NTERESTED PARTY BERKSHIRE HATHAWAY LIFE
INSURANC E COMPANY OF N EBRASKA TO PETITION AND FIRST AM ENDED
16 P ETITION FOR APPROVAL FOR TRANSFER OF PAYM ENT RIGHTS [BY AN D
BETWEEN DE' A NG ELO SALONG A AND C ANYON L AK ES TITLE, LLC, PURSUANT
17 TO CALIFORNIA INSU RA NCE CODE§§ 10134, ET SEQ.]
18 on the parties in this action addressed as follows
19 SEE ATTACH ED SERVICE UST
20 BY MAIL: By placing a true copy in a sealed envelope addressed as indicated above, on April I 0, 2024, I am
readily fami liar w ith the firm's practice of collection and processing correspondence for mailing. It is deposited
21 with the U.S. Postal Service on that same day in the ordinary course of business. I am aware that on motion of
party served, service is presumed invalid if postal cancellation date or postage meter date is more than one day
22 after date of deposit for mailing in affi davit.
23 BY E-MAIL: I personally sent to the addressee's e-mail address as identi fied above, a true copy of the above-
descri bed document(s) on April I 0, 2024.
24
I declare under penalty of perjury under the laws o f the State of Cali fo rni a that the foregoing is true and
25 correct and that this declaration was executed on April I 0, 2024, at Santee, Californ ia.
~
26
27 .
28
_ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ e?
Pa_,o.__' ---- -- - - - - - - - - -- - -- -
CASE NO. 24-CIV-00762 - N EV ILLE DECLA RATI ON IN SUPPORT OF RESPONSE OF BERKSHIRE HATHAWAY
LI FE TO CANYON LA KES' PETITIONS FOR TRANSFER OF STRUCTURED SETT LEMENT PAYM ENTS
1 SERVICE LIST
2
3
COUNSEL PHONE/FAX NOS. REPRESENTING
4
Juan C. Lozano, Esq. (619) 647-9129 Attorney for Petitioner CANYON
5 THE LAW OFFICE OF JUAN C. LOZANO LAKES TITLE, LLC
3555 Rosecrans Street, Suite 114-208 FAX (619) 330-9979
6 San Diego, CA 92101 [VIA U.S. MAIL & E-MAIL]
lozanolaw@gmail.com
7 De’Angelo L. R. Salonga Payee
1306 Geneva Avenue (Berkshire’s last known address)
8 San Francisco, CA 94112
[VIA U.S. MAIL ONLY]
9
De’Angelo L. R. Salonga Payee
10 75 Citrus Avenue, Apt. 4 (Petitioner’s POS)
Daly City, CA 94014
11 [VIA U.S. MAIL ONLY]
12 BHG Structured Settlements, Inc. [VIA U.S. MAIL]
1314 Douglas Street, Suite 1400
13 Omaha, NE 68102-1944
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Page 8
CASE NO. 24-CIV-00762 - NEVILLE DECLARATION IN SUPPORT OF RESPONSE OF BERKSHIRE HATHAWAY
LIFE TO CANYON LAKES’ PETITIONS FOR TRANSFER OF STRUCTURED SETTLEMENT PAYMENTS
Exhibit A
BERKSHIRE HATHAWAY LIFE INSURANCE COMPANY OF NEBRASKA
A Stock Company
1314 Douglas Street, Suite 1400
Omaha, Nebraska 68102-1944
(402) 916-3100
SINGLE PREMIUM ANNUITY CONTRACT
For valuable consideration, Berkshire Hathaway Life Insurance Company of Nebraska (herein called
"BHLN") agrees that it will make the payments described in this Contract in accordance w ith the terms
and conditions thereof. The amount and due date of each payment is shown on the SCHEDULE OF
PAYMENTS.
There is no cash value provided under this Contract.
Please read this Contract carefully.
Contract No.: BN-17-1 7743 Contract Date: October 3, 2017
Owner: BHG Structured Settlements, Inc., a Missouri corporation
Date of Birth of Measuring Life:
Measuring Life: De'Angelo Lawrence Rebucas Social Security No.:
Salonga
Annuity Commencement Date: November 3, 2023
Optional Payee: De'Angelo Lawrence Rebucas Salonga
Contingent Payee (if any): Estate of De'Angelo Lawrence Rebucas Salonga
Signed for Berkshire Hathaway Life Insurance Company of Nebraska.
&~ Assistant Secretary
f J ';,V~
President
10 DAY RIGHT TO EXAMINE CONTRACT
If the Owner returns the contract to BHLN within 10 days after its receipt and requests in writing that BHLN
cancel the contract, BHLN will do so and refund the amount received to purchase the annuity.
FORM BN-1 (7/94) Page 1 of 4
CONTRACT NO.: BN-17-17743
BERKSHIRE HATHAWAY LIFE INSURANCE COMPANY OF NEBRASKA
A Stock Company
1314 Douglas Street, Suite 1400
Omaha, Nebraska 68102-1944
(402) 916-3100
SINGLE PREMIUM ANNUITY CONTRACT
Rights of Owner: The Owner stated on Page 1 of this Contract owns the annuity described
in this Contract. The Owner will have the right at any time to designate the
payee to whom benefits are payable under the annuity. Unless the Owner
otherwise directs, however, Berkshire Hathaway Life Insurance Company
of Nebraska ("BHLN") will make all payments under this annuity to the
Optional Payee named in this Contract during the lifetime of the Optional
Payee and, thereafter, to the Contingent Payee. If no Optional Payee is
stated, the Optional Payee shall be the Measuring Life. If the Contingent
Payee is not stated on Page 1 of the Contract, the Estate of the Optional
Payee shall be the Contingent Payee.
No change in payee will be effective until written notice of the change is
received by BHLN . However any change in an Optional Payee or
Contingent Payee designation will take effect as of the date the request
was signed but without prejudice to BHLN on account of any payment
made by it within ten days after its receipt of the request.
The Owner is the sole person entitled to exercise any right or privilege
under this Contract.
Proof of Living: BHLN may require proof that the Measuring Life or Optional Payee or
Contingent Payee is living on the date on which any annuity payment is to
be made. If proof is requested , no payment will be made until the proof
has been received by BHLN.
Payees: If two or more Optional Payees or Contingent Payees are designated and
their respective interests are not specified, their interests will be several
and equal.
Change or Waiver: No sales representative or other person, except an officer of BHLN, may
make or change any term or condition of this Contract or make any
binding promises concerning this Contract on behalf of BHLN. No
modification, interpretation or waiver of any provision of this Contract is
valid unless it is in writing and signed by an officer of BHLN.
Amendments: This Contract may only be amended by an endorsement signed by an
officer of BHLN and attested by BHLN's Secretary or Assistant
Secretary.
FORM BN-1 (7/94) Page 2 of4
CONTRACT NO.: BN-17-17743
Misstat ements : If the age or sex of the Measuring Life, Optional Payee or Contingent
Payee or any other relevant fact has been misstated, BHLN will not pay a
greater amount under this Contract than would have been paid by BHLN if
the correct information had been provided. Any overpayment of annuity will,
together with interest, be deducted from future annuity payments. The
Interest rate(s) will be that used in detennining the purchase price of the
annuity.
Nonassignability of Claims
of Creditors: This Con1ract and the payments provided under this Contract are
nonassignable and will be exempt from the claims of any creditor of the
Owner, Optional Payee or Contingent Payee to the maximum extent
permitted by law.
Currency: Any money BHLN pays, or that is paid to BHLN, must be in United States
currency. Any amount BHLN owes will be payable at BHLN's Home Office
in Omaha, Nebraska.
Payee
Direct ion: BHLN will not be deemed to know of any direction to change payee or of
the death of any payee until ten days after such written direction or
information is received at our Home Office. BHLN is not obliged to assure
that any payment direction is valid or sufficient.
No Change, No Surrender
and No Loan: No person may change the annuity payments, surrender this Contract for
cash or borrow any amount from BHLN under this Contract. Neither the
Owner nor any other person has the right to accelerate, defer, increase or
decrease any payment required to be made under this Contract.
No Participation
(No Dividends): This Contract is not eligible for any dividends. Neither the Owner nor any
other person shall participate in the profits of BHLN.
FORM BN-1 (7/94) Page 3 of 4
CONTRACT NO.: BN-17-17743
Schedule of
Payments: BHLN will make payments under this Contract to:
De'Angelo Lawrence Rebucas Salonga
1306 Geneva Avenue
San Francisco, CA 94112
Certain deferred lump sums payable on the following basis:
Payment Payment
Date Amount
November 3, 2023 $5,000.00 (Five Thousand Dollars and Zero Cents)
November 3, 2026 $5,000.00 (Five Thousand Dollars and Zero Cents)
November 3, 2028 $5,000.00 (Five Thousand Dollars and Zero Cents)
November 3, 2030 $50,000.00 (Fifty Thousand Dollars and Zero Cents)
November 3, 2035 $103,075.00 (One Hundred Three Thousand Seventy-Five Dollars
and Zero Cents)
FORM BN-1 (7/94) Page4 of 4
Preview
1 Martin L. Shives, Esq. (SBN 123631) SUMMERS & SHIVES, A.P.C. 2 1180 Rosecrans Street, #220 San Diego, CA 92106-2660 3 Telephone: (858) 874-1800 Facsimile: (858) 874-1888 4 martinshives@summers-shives.com 5 Attorneys for Specially Appearing Interested Party BERKSHIRE HATHAWAY LIFE INSURANCE COMPANY OF NEBRASKA 6 7 8 SUPERIOR COURT OF THE STATE OF CALIFORNIA 9 FOR THE COUNTY OF SAN MATEO 10 11 IN RE: Petition of: ) CASE NO: 24-CIV-00762 ) 12 CANYON LAKES TITLE, LLC, ) UNLIMITED JURISDICTION ) 13 Petitioner ) DECLARATION OF BRENNAN S. ) NEVILLE IN SUPPORT OF 14 ) RESPONSE OF SPECIALLY ) APPEARING INTERESTED PARTY 15 (Real Party in Interest D.S.) ) BERKSHIRE HATHAWAY LIFE [aka DE’ANGELO SALONGA] ) INSURANCE COMPANY OF 16 ) NEBRASKA TO PETITION AND ) FIRST AMENDED PETITION FOR 17 ) APPROVAL FOR TRANSFER OF ) PAYMENT RIGHTS [BY AND 18 ) BETWEEN DE’ANGELO SALONGA ) AND CANYON LAKES TITLE, LLC, 19 ) PURSUANT TO CALIFORNIA ) INSURANCE CODE §§ 10134, ET SEQ.] 20 ) ) Date: April 26, 2024 21 ) Time: 9:00 a.m. ) Dept: 24 22 __________________________________ ) 23 I, Brennan S. Neville, declare: 24 1. I am Associate General Counsel and Assistant Secretary for Berkshire Hathaway 25 Life Insurance Company of Nebraska (“BHLN”) and BHG Structured Settlements, Inc. 26 (“BHG”). In addition to my positions with BHLN and BHG, I am Vice President of BIFCO, 27 LLC (“BIFCO”), and am familiar with its Hardship Exchange Program. 28 //// Page 1 CASE NO. 24-CIV-00762 - NEVILLE DECLARATION IN SUPPORT OF RESPONSE OF BERKSHIRE HATHAWAY LIFE TO CANYON LAKES’ PETITIONS FOR TRANSFER OF STRUCTURED SETTLEMENT PAYMENTS 1 2. In connection with my positions with BHLN and BHG, I am familiar with the 2 processes and procedures employed in connection with structured settlement transfers relating 3 to annuity contracts issued by BHLN and owned by BHG. I have reviewed and am familiar 4 with the file concerning the structured settlement established for De’Angelo Lawrence Rebucas 5 Salonga (“Mr. Salonga”) who, I am informed and believe, is the “D.S.” and “De’Angelo 6 Salonga” referenced in the Petition. 7 3. Pursuant to an annuity contract, No. BN-17-17743 (“the Contract”), owned by 8 BHG and issued by BHLN in conjunction with resolving his personal injury claim, BHLN 9 became obligated to make the following deferred lump sum payments to Mr. Salonga: 10 Payment Payment Date Amount 11 November 3, 2023 $ 5,000.00 (Five Thousand Dollars and Zero Cents) 12 November 3, 2026 $ 5,000.00 (Five Thousand Dollars and Zero Cents) November 3, 2028 $ 5,000.00 (Five Thousand Dollars and Zero Cents) 13 November 3, 2030 $ 50,000.00 (Fifty Thousand Dollars and Zero Cents) November 3, 2035 $103,075.00 (One Hundred Three Thousand Seventy- 14 Five Dollars and Zero Cents) 15 The payments due Mr. Salonga under the Contract have a total nominal value of 16 $168,075.00. No copy of the annuity contract was attached to the Petition. Therefore, a 17 complete copy of the Contract is attached as Exhibit “A” hereto. 18 4. The Contract was issued on October 3, 2017. 19 5. BHLN paid Mr. Salonga the first $5,000.00 lump sum payment November 3, 20 2023. 21 6. I am informed and believe, and on that basis allege, that Canyon Lakes seeks 22 approval of a transfer pursuant to a Purchase, Sale, and Transfer Agreement (“Transfer 23 Agreement”) executed by Mr. Salonga on February 4, 2024 (Exhibit “A” to the Petition). As 24 outlined in Schedule “A” to Exhibit “A” of the Petition (the Transfer Agreement), Mr. Salonga 25 has agreed to transfer to Canyon Lakes the entirety of the $163,075.00 in future payments 26 remaining under the Contract. In exchange for these future payments, he would receive an 27 immediate payment of $50,483.52. Canyon Lakes asserts it used an ADR of 12.77% to 28 //// Page 2 CASE NO. 24-CIV-00762 - NEVILLE DECLARATION IN SUPPORT OF RESPONSE OF BERKSHIRE HATHAWAY LIFE TO CANYON LAKES’ PETITIONS FOR TRANSFER OF STRUCTURED SETTLEMENT PAYMENTS 1 calculate the purchase price. (See, “Disclosure Notice Required by Law,” California version, 2 dated January 25, 2024, Exhibit “B” to the Petition). 3 7. I am informed and believe, and on that basis allege, that Canyon Lakes is a 4 subsidiary, assignee, or otherwise affiliated with Lion Grace Capital (“Lion Grace”). I am 5 further informed and believe that Lion Grace is engaged in the business of purchasing structured 6 settlement payment rights. 7 8. In BHLN’s experience, Lion Grace and its affiliates (including Canyon Lakes) 8 frequently fail to file payee declarations with their initial transfer petitions and only file them, 9 if at all, after BHLN has filed a response. 10 9. I am informed and believe, and on that basis allege that, under the Transfer Act, 11 Canyon Lakes is required to pay the first $1,500.00 towards the cost of independent professional 12 advice that can help Mr. Salonga to evaluate the transaction. I am further informed and believe 13 that Mr. Salonga has waived his right to consult an independent professional adviser in 14 connection with the instant transaction (see, February 4, 2024 Statement of Professional 15 Representation waiver, Exhibit “C” to the Petition). 16 10. In at least twenty previous unrelated transfer cases in several states, many of 17 which were filed by Lion Grace entities, a purportedly independent professional advisor was 18 retained shortly before the hearing, purportedly to advise the payees, nearly all of whom had 19 previously waived their right to obtain such advice as to their transfer. This advisor uniformly 20 discourages payees from contracting with BIFCO and, instead, encourages them to pursue 21 transactions with the original factoring companies (or their affiliates) even when the terms were 22 worse for the payee. 23 11. Effective January 1, 2017, BIFCO, a company affiliated with BHLN and with 24 BHG, implemented a “Hardship Exchange Program” (or the “Program”) for the benefit of 25 existing BHLN annuity payees in order to provide them liquidity when facing an unanticipated 26 change in circumstances since entering into their structured settlement. 27 //// 28 //// Page 3 CASE NO. 24-CIV-00762 - NEVILLE DECLARATION IN SUPPORT OF RESPONSE OF BERKSHIRE HATHAWAY LIFE TO CANYON LAKES’ PETITIONS FOR TRANSFER OF STRUCTURED SETTLEMENT PAYMENTS 1 12. As set forth below, if this Court concludes a transfer of future payments is in the 2 best interests of Mr. Salonga, the BIFCO Program, as outlined below, would permit him to 3 receive substantially more from selling the same future payments or, in the alternative, permit 4 him to receive the same immediate amount but transfer a substantially smaller portion of the 5 future payments. 6 13. BIFCO does not actively market or solicit payees concerning the Program. The 7 BIFCO Program is offered as an alternative for BHLN payees (it is not available to the general 8 public) and could be helpful to Mr. Solanga. The Program uses an ADR which often (as here) 9 is significantly less than those utilized by factoring companies, such as Canyon Lakes, that are 10 in the business of purchasing annuity payments. Since starting its Hardship Program, BIFCO 11 has completed approximately 174 court-approved transfers involving structured settlement 12 payments made under contracts issued by BHLN or its affiliates. 13 14. For such payees, BIFCO will contract to purchase future payments at an annual 14 discount rate of 6.5% plus a $1,000.00 administrative charge. These transactions are made 15 within the scope of 26 U.S.C. § 5891 and applicable state law governing the transfer of 16 structured settlement payment rights, including the Transfer Act. 17 15. If BIFCO were to contract to purchase from Mr. Salonga the same $163,975.00 18 in future payments at issue in this Petition, and using the current hearing date of April 26, 2024, 19 as a measuring date, instead of the $50,483.82 offered by Canyon Lakes, BIFCO could offer 20 him $90,081.62 (a difference of $39,598.10) at an effective ADR of 6.73%. 21 16. Alternatively, BIFCO could pay Mr. Salonga the same $50,483.82 by purchasing 22 a prorated share of the same payments, totaling $92,188.49 (allowing him to retain $71,797.51 23 in future payments on the schedule set forth in the Contract). BIFCO could present other 24 scenarios for Mr. Salonga to consider, as well. BIFCO encourages payees to consider a smaller 25 transaction when possible if this will allow the payees to address his or her immediate needs 26 and still preserve substantial payments for the future. 27 //// 28 //// Page 4 CASE NO. 24-CIV-00762 - NEVILLE DECLARATION IN SUPPORT OF RESPONSE OF BERKSHIRE HATHAWAY LIFE TO CANYON LAKES’ PETITIONS FOR TRANSFER OF STRUCTURED SETTLEMENT PAYMENTS 1 17. If Mr. Salonga is willing to pursue a sale to BIFCO and cooperate in doing so, and 2 if this Court finds a transfer to be in his best interests under the Transfer Act, BIFCO will enter 3 into the transaction with him. Any transaction would require him to contact BIFCO and 4 complete a brief information form and provide limited documentation, at which point BIFCO 5 would provide a disclosure statement and transfer agreement. Further, any potential transaction 6 between Mr. Salonga and BIFCO would be subject to the approval of a court of competent 7 jurisdiction and the attendant “best interests” determination required by the Transfer Act. 8 18. BIFCO would, at its own expense, prepare and file the petition seeking this 9 Court’s approval of the transaction. Mr. Salonga would not be assessed any charges or fees 10 beyond the $1,000.00 administrative charge already factored into the purchase price and 11 charged only if the transfer is completed. Also, Mr. Salonga would not be assessed any charges 12 or fees if he elected not to pursue the transaction or if the transaction failed to receive court 13 approval. 14 19. As stated above, I am informed and believe that, pursuant to California law, Mr. 15 Salonga has the right to obtain independent professional advice and has waived that right in 16 connection with the Canyon Lakes transfer. If Mr. Salonga entered in to a BIFCO transfer, 17 BIFCO would urge him to seek independent professional advice of which BIFCO would pay 18 up to $1,500.00 of fees he incurs in obtaining such advice. 19 20. BIFCO is not a bargaining competitor of the factoring companies. Rather, its 20 6.5% ADR and $1,000.00 administrative charge are fixed and non-negotiable. If Canyon Lakes 21 wants to reduce its ADR for the benefit of the payee, BIFCO would neither object to the amount 22 nor submit a competing bid. BIFCO’s motivation is to assist the Court (and Mr. Salonga), not 23 to profit from any transaction with Mr. Salonga pursuant to the Hardship Exchange Program. 24 BHLN’s purpose is to assist the Court in protecting the interests of Mr. Salonga. If a transfer 25 is consummated, it does not change BHLN’s payment schedule. BHLN simply changes the 26 name of the payee for each of the payments when they become due. 27 //// 28 //// Page 5 CASE NO. 24-CIV-00762 - NEVILLE DECLARATION IN SUPPORT OF RESPONSE OF BERKSHIRE HATHAWAY LIFE TO CANYON LAKES’ PETITIONS FOR TRANSFER OF STRUCTURED SETTLEMENT PAYMENTS , KDYH SHUVRQDO NQRZOHGJH RI WKH IDFWV FRQWDLQHG LQ WKLV GHFODUDWLRQ FRQFHUQLQJ WKH &RQWUDFW LVVXHG WR 0U 6DORQJD DQG LI FDOOHG DV D ZLWQHVV FRXOG FRPSHWHQWO\ WHVWLI\ WR WKHP $V WR WKRVH PDWWHUV VWDWHG RQ LQIRUPDWLRQ DQG EHOLHI , DP LQIRUPHG DQG EHOLHYH WKHP WR EH WUXH , GHFODUH XQGHU SHQDOW\ RI SHUMXU\ XQGHU WKH ODZV RI WKH 6WDWH RI &DOLIRUQLD WKDW WKH IRUHJRLQJ LV WUXH DQG FRUUHFW Nashville, Tennessee 09 GD\ RI $SULO DW 2PDKD 1HEUDVND ([HFXWHG WKLV BBBB BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB %UHQQDQ 6 1HYLOOH 3DJH &$6( 12 &,9 1(9,//( '(&/$5$7,21 ,1 6833257 2) 5(63216( 2) %(5.6+,5( +$7+$:$< /,)( 72 &$1<21 /$.(6 3(7,7,216 )25 75$16)(5 2) 6758&785(' 6(77/(0(17 3$<0(176 SUP ERIOR COURT, COUNTY OF SAN MATEO FOR COURT USE ON L Y 2 TITLE OF CASE (Abbreviated) 3 In Re Petition of: Canyon Lakes Title, LLC A ITORNEY(S) NA~IE AND ADDRESS TELEPHONE 4 M art in L . Shives, Esq. (SBN: 12363 1) (85 8) 874-1 800 SUMMERS & SHIVES, A.P.C. FAX : (85 8) 874-1888 5 I 180 Rosecrans Street, # 220 San Diego, California 92 106-2660 6 ATr0RNEY(S) FOR: HEARING: DATE-TIME-DEPT CASE NUM BER 7 Specially A ppearing Interested Party BERKSHIRE HATH AWAY LIFE 24-CIV -00762 8 INSU RAN C E COMPAN Y OF N EBRASK A 9 DEC LARATION O F SERVICE 10 [Code of Civil Procedure §§ IO13, el seq. and 201 5.5] 1I I, th e undersigned, declare: 12 I am, and was at the time o f service of the papers herein referred to, over the age of 18 y ears, and not a party to this action. M y business address is 1180 Rosecrans Street,# 220, San D iego, Cal ifornia 92 106-2660. 13 I served the following document(s): 14 DECLARATION OF BRENN AN S. NEVILLE IN SUPPORT OF R ESPON SE OF 15 SPEC IALLY APPE ARING I NTERESTED PARTY BERKSHIRE HATHAWAY LIFE INSURANC E COMPANY OF N EBRASKA TO PETITION AND FIRST AM ENDED 16 P ETITION FOR APPROVAL FOR TRANSFER OF PAYM ENT RIGHTS [BY AN D BETWEEN DE' A NG ELO SALONG A AND C ANYON L AK ES TITLE, LLC, PURSUANT 17 TO CALIFORNIA INSU RA NCE CODE§§ 10134, ET SEQ.] 18 on the parties in this action addressed as follows 19 SEE ATTACH ED SERVICE UST 20 BY MAIL: By placing a true copy in a sealed envelope addressed as indicated above, on April I 0, 2024, I am readily fami liar w ith the firm's practice of collection and processing correspondence for mailing. It is deposited 21 with the U.S. Postal Service on that same day in the ordinary course of business. I am aware that on motion of party served, service is presumed invalid if postal cancellation date or postage meter date is more than one day 22 after date of deposit for mailing in affi davit. 23 BY E-MAIL: I personally sent to the addressee's e-mail address as identi fied above, a true copy of the above- descri bed document(s) on April I 0, 2024. 24 I declare under penalty of perjury under the laws o f the State of Cali fo rni a that the foregoing is true and 25 correct and that this declaration was executed on April I 0, 2024, at Santee, Californ ia. ~ 26 27 . 28 _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ e? Pa_,o.__' ---- -- - - - - - - - - -- - -- - CASE NO. 24-CIV-00762 - N EV ILLE DECLA RATI ON IN SUPPORT OF RESPONSE OF BERKSHIRE HATHAWAY LI FE TO CANYON LA KES' PETITIONS FOR TRANSFER OF STRUCTURED SETT LEMENT PAYM ENTS 1 SERVICE LIST 2 3 COUNSEL PHONE/FAX NOS. REPRESENTING 4 Juan C. Lozano, Esq. (619) 647-9129 Attorney for Petitioner CANYON 5 THE LAW OFFICE OF JUAN C. LOZANO LAKES TITLE, LLC 3555 Rosecrans Street, Suite 114-208 FAX (619) 330-9979 6 San Diego, CA 92101 [VIA U.S. MAIL & E-MAIL] lozanolaw@gmail.com 7 De’Angelo L. R. Salonga Payee 1306 Geneva Avenue (Berkshire’s last known address) 8 San Francisco, CA 94112 [VIA U.S. MAIL ONLY] 9 De’Angelo L. R. Salonga Payee 10 75 Citrus Avenue, Apt. 4 (Petitioner’s POS) Daly City, CA 94014 11 [VIA U.S. MAIL ONLY] 12 BHG Structured Settlements, Inc. [VIA U.S. MAIL] 1314 Douglas Street, Suite 1400 13 Omaha, NE 68102-1944 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 8 CASE NO. 24-CIV-00762 - NEVILLE DECLARATION IN SUPPORT OF RESPONSE OF BERKSHIRE HATHAWAY LIFE TO CANYON LAKES’ PETITIONS FOR TRANSFER OF STRUCTURED SETTLEMENT PAYMENTS Exhibit A BERKSHIRE HATHAWAY LIFE INSURANCE COMPANY OF NEBRASKA A Stock Company 1314 Douglas Street, Suite 1400 Omaha, Nebraska 68102-1944 (402) 916-3100 SINGLE PREMIUM ANNUITY CONTRACT For valuable consideration, Berkshire Hathaway Life Insurance Company of Nebraska (herein called "BHLN") agrees that it will make the payments described in this Contract in accordance w ith the terms and conditions thereof. The amount and due date of each payment is shown on the SCHEDULE OF PAYMENTS. There is no cash value provided under this Contract. Please read this Contract carefully. Contract No.: BN-17-1 7743 Contract Date: October 3, 2017 Owner: BHG Structured Settlements, Inc., a Missouri corporation Date of Birth of Measuring Life: Measuring Life: De'Angelo Lawrence Rebucas Social Security No.: Salonga Annuity Commencement Date: November 3, 2023 Optional Payee: De'Angelo Lawrence Rebucas Salonga Contingent Payee (if any): Estate of De'Angelo Lawrence Rebucas Salonga Signed for Berkshire Hathaway Life Insurance Company of Nebraska. &~ Assistant Secretary f J ';,V~ President 10 DAY RIGHT TO EXAMINE CONTRACT If the Owner returns the contract to BHLN within 10 days after its receipt and requests in writing that BHLN cancel the contract, BHLN will do so and refund the amount received to purchase the annuity. FORM BN-1 (7/94) Page 1 of 4 CONTRACT NO.: BN-17-17743 BERKSHIRE HATHAWAY LIFE INSURANCE COMPANY OF NEBRASKA A Stock Company 1314 Douglas Street, Suite 1400 Omaha, Nebraska 68102-1944 (402) 916-3100 SINGLE PREMIUM ANNUITY CONTRACT Rights of Owner: The Owner stated on Page 1 of this Contract owns the annuity described in this Contract. The Owner will have the right at any time to designate the payee to whom benefits are payable under the annuity. Unless the Owner otherwise directs, however, Berkshire Hathaway Life Insurance Company of Nebraska ("BHLN") will make all payments under this annuity to the Optional Payee named in this Contract during the lifetime of the Optional Payee and, thereafter, to the Contingent Payee. If no Optional Payee is stated, the Optional Payee shall be the Measuring Life. If the Contingent Payee is not stated on Page 1 of the Contract, the Estate of the Optional Payee shall be the Contingent Payee. No change in payee will be effective until written notice of the change is received by BHLN . However any change in an Optional Payee or Contingent Payee designation will take effect as of the date the request was signed but without prejudice to BHLN on account of any payment made by it within ten days after its receipt of the request. The Owner is the sole person entitled to exercise any right or privilege under this Contract. Proof of Living: BHLN may require proof that the Measuring Life or Optional Payee or Contingent Payee is living on the date on which any annuity payment is to be made. If proof is requested , no payment will be made until the proof has been received by BHLN. Payees: If two or more Optional Payees or Contingent Payees are designated and their respective interests are not specified, their interests will be several and equal. Change or Waiver: No sales representative or other person, except an officer of BHLN, may make or change any term or condition of this Contract or make any binding promises concerning this Contract on behalf of BHLN. No modification, interpretation or waiver of any provision of this Contract is valid unless it is in writing and signed by an officer of BHLN. Amendments: This Contract may only be amended by an endorsement signed by an officer of BHLN and attested by BHLN's Secretary or Assistant Secretary. FORM BN-1 (7/94) Page 2 of4 CONTRACT NO.: BN-17-17743 Misstat ements : If the age or sex of the Measuring Life, Optional Payee or Contingent Payee or any other relevant fact has been misstated, BHLN will not pay a greater amount under this Contract than would have been paid by BHLN if the correct information had been provided. Any overpayment of annuity will, together with interest, be deducted from future annuity payments. The Interest rate(s) will be that used in detennining the purchase price of the annuity. Nonassignability of Claims of Creditors: This Con1ract and the payments provided under this Contract are nonassignable and will be exempt from the claims of any creditor of the Owner, Optional Payee or Contingent Payee to the maximum extent permitted by law. Currency: Any money BHLN pays, or that is paid to BHLN, must be in United States currency. Any amount BHLN owes will be payable at BHLN's Home Office in Omaha, Nebraska. Payee Direct ion: BHLN will not be deemed to know of any direction to change payee or of the death of any payee until ten days after such written direction or information is received at our Home Office. BHLN is not obliged to assure that any payment direction is valid or sufficient. No Change, No Surrender and No Loan: No person may change the annuity payments, surrender this Contract for cash or borrow any amount from BHLN under this Contract. Neither the Owner nor any other person has the right to accelerate, defer, increase or decrease any payment required to be made under this Contract. No Participation (No Dividends): This Contract is not eligible for any dividends. Neither the Owner nor any other person shall participate in the profits of BHLN. FORM BN-1 (7/94) Page 3 of 4 CONTRACT NO.: BN-17-17743 Schedule of Payments: BHLN will make payments under this Contract to: De'Angelo Lawrence Rebucas Salonga 1306 Geneva Avenue San Francisco, CA 94112 Certain deferred lump sums payable on the following basis: Payment Payment Date Amount November 3, 2023 $5,000.00 (Five Thousand Dollars and Zero Cents) November 3, 2026 $5,000.00 (Five Thousand Dollars and Zero Cents) November 3, 2028 $5,000.00 (Five Thousand Dollars and Zero Cents) November 3, 2030 $50,000.00 (Fifty Thousand Dollars and Zero Cents) November 3, 2035 $103,075.00 (One Hundred Three Thousand Seventy-Five Dollars and Zero Cents) FORM BN-1 (7/94) Page4 of 4