This application by petitioner seeks court approval, in a special proceeding brought pursuant to General Obligations Law sections 5-1705 and 5-1706, for the transfer of a structured settlement.

The petitioner, pursuant to former General Obligations Law section 5-1705, in effect prior to January 1, 2011 (L 2010, ch 511), was required to serve the notice of petition and petition upon all interested parties at least 20 days before the time that the petition was noticed to be heard. Service of a notice of petition in a special proceeding must be made in the same manner as a summons in an action (CPLR 403[c]). Thus, the method of service is governed by CPLR article 3 and the provisions for service of process in various other statutes, such as Business Corporation Law sections 306 and 307 (see, Alexander, Practice Commentaries, McKinney's Cons Laws of NY, Book 7B, CPLR C2103:1, 2011 Supp Pamph, at 322).

Petitioner, however, served Prudential Insurance Company of America and Prudential Assigned Settlement Service Corporation in a manner authorized by CPLR 2103(b)(6) for serving papers upon a party in a pending action by serving the party's attorney. Such service is [*2]insufficient to obtain jurisdiction over the interested parties and satisfy the requirements of General Obligations Law section 5-1705 and CPLR 403(c) (see, Matter of Settlement Capital Corp., 194 Misc 2d 711, 712 [Sup Ct Rensselaer County 2003]; accord, Carlton Boiler Repair, Inc. v D.N.G. Ass'n, Inc., 2007 WL 4856389 [Sup Ct New York County 2007]; see also, Foster v Piasecki, 259 AD2d 804 [3rd Dept. 1999]; Happy Age Shops v Matyas, 128 AD2d 754 [2nd Dept. 1987]; see generally Invar Intl., Inc. v Zorlu, NYLJ, July 30, 2010 [Sup Ct New York County 2010] [where service on parties themselves is allegedly impractical]).

The papers submitted on the current application are also deficient for failure to provide proof of notice to the payee of the disclosure statement required under General Obligations Law section 5-1703 (General Obligations Law § 5-1705 [d][ii]; see, Matter of Settlement Capital Corp., 194 Misc 2d at 712, supra). In addition, the copyof the underlying settlement agreement submitted by petitioner is not dated or executed, and the purported affidavit of Judson N. Caddy, Jr., is unsworn.

The Court notes that General Obligations Law section 5-1705 was amended, effective January 1, 2011 (L 2010, ch 511). Any further application by petitioner for approval of the subject transfer shall comply with all the requirements of the amended section 5-1705, including the direction that the special proceeding be brought on only by order to show cause (General Obligations Law section 5-1705 [a].)

Upon the foregoing papers, it is ordered that the unopposed petition is denied without prejudice to a new application upon proper papers and proof of proper service upon all interested parties as provided herein.

Dated: April 11, 2011

J.S.C.