Judge: Anne Richardson, Case: 24STCP02832, Date: 2024-10-15 Tentative Ruling
DEPARTMENT 40 - JUDGE ANNE RICHARDSON - LAW AND MOTION RULINGS
The Court issues tentative rulings on certain motions.The tentative ruling will not become the final ruling until the hearing [see CRC 3.1308(a)(2)]. If the parties wish to submit on the tentative ruling and avoid a court appearance, all counsel must agree and choose which counsel will give notice. That counsel must 1) email Dept 40 by 8:30 a.m. on the day of the hearing (smcdept40@lacourt.org) with a copy to the other party(ies) and state that all parties will submit on the tentative ruling, and 2) serve notice of the ruling on all parties. If any party declines to submit on the tentative ruling, then no email is necessary and all parties should appear at the hearing in person or by Court Call.
Case Number: 24STCP02832 Hearing Date: October 15, 2024 Dept: 40
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IN RE Petition of: J.G. WENTWORTH ORIGINATIONS,
LLC, Petitioner, and JACOB ELIJAN HUSSER AKA ELIJAH HUSSER, Real
Party-in-Interest/ Transferor |
Case No.: 24STCP02832 Hearing Date: October
15, 2024 Trial Date: N/A [TENTATIVE] RULING RE: Petitioner J.G.
Wentworth Originations, LLC’s Verified Petition for Approval for Transfer of
Payment Rights. |
I. Background
Petitioner J.G. Wentworth Originations, LLC (J.G. Wentworth) has filed a
petition for approval of the transfer of certain structured settlement rights
belonging to Real Party-in-Interest Jacob Elijah Husser aka Elijah Husser. Specifically,
J.G. Wentworth seeks the transfer of $40,000.00 in future annuity payment rights
belonging to Elijah Husser to be paid on May 25, 2031, the present discounted
value of which is $28,385.15, to be transferred in
exchange for a purchase price of $15,000.00.
The Petition was filed on September
13, 2024.
The First Amended Verified Petition
was filed on September 20, 2024.
On September 5, 2024, Petitioner J.G. Wentworth filed a notice of hearing for October
15, 2024.
That same day, Petitioner filed a proof of service by mail.
The filing shows serving of the notice of hearing, verified Petition, notice of
case assignment, ADR information package, and proof of service on Elijah Husser, the annuity issuer, and the
annuity obligor.
On September 24, 2024, Petitioner
filed an Amended Exhibit ‘A’ to the Petition.
On October 7, 2024, Petitioner
filed a Notice of Errata, an Amended Exhibit ‘D’ to the Petition, and a
Declaration from Elijah Husser.
There is no opposition or response.
The Petition is now before the
Court.
II. Petition to Transfer Structured
Settlement Payment Rights
A.
Legal Standard
A transfer of structured settlement payment
rights is void unless a court reviews and approves the transfer and finds that
(a) the transfer of the structured settlement payment rights is fair and
reasonable and in the best interest of the payee, taking into account the
welfare and support of his or her dependents, and (b) the transfer complies
with the requirements of Insurance Code Sections 10134 to 10139.5, will not
contravene other applicable law, and that the court has reviewed and approved
the transfer as provided in Section 10139.5. (See Ins. Code, § 10137, subds.
(a)-(b).)
B.
Analysis
1. Section
10136 Requirements
a. Relevant
Law
No direct or indirect transfer
of structured settlement payment rights by a payee to which Section 10136
applies shall be effective, and no structured settlement obligor or annuity
issuer shall be required to make any payment directly or indirectly to a transferee,
unless all of the provisions of Section 10136 of the Insurance Code are
satisfied. (Ins. Code, § 10136, subd. (a).)
b. Determination
The petition satisfies the
requirements of Section 10136 as follows (Ins. Code, § 10136, subds. (b)-(e).)
First, the transfer agreement
satisfies the disclosure form requirements set out in Insurance Code section 10136, subdivision (b) because the transfer
agreement is accompanied by a disclosure addressed to Elijah Husser and the
disclosure contains all the statutorily required language of section 10136,
subdivision (b). (See Ins. Code, § 10136, subd. (b); see also 9/24/24 Amended Exhibit
A, California Purchase Contract, § 10.)
Second, the transfer agreement satisfies the transfer-agreement
requirements set out in Insurance Code section 10136, subdivision (c) because
the transfer agreement contains all the necessary language required from this
statutory subdivision. (See Ins. Code, § 10136, subd. (c); 9/24/24 Amended
Exhibit A, California Purchase Contract, §§ 2 [amount and due date of payment
rights to be sold], 10 [remaining requirements].)
Third, the transfer agreement does not violate Section 10138 as none of
the contents prohibited by this statutory section are contained in the transfer
agreement. (See Ins. Code, § 10136, subd. (d); see also 9/24/24 Amended Exhibit
A, California Purchase Contract.)
Fourth, Elijah Husser has not sought cancellation of the transfer
agreement as of the date of this hearing. (See Ins. Code, § 10136, subd. (e);
see also 10/07/24 HUsser Decl., ¶ 13.)
Accordingly, the Court finds that J.G. Wentworth’s proposed transfer of Elijah
Husser’s settlement rights satisfies the requirements of Insurance Code section
10136, subdivisions (a) through (e).
2. Section 10139.5 Requirements
a. Relevant Law
A direct or
indirect transfer of structured settlement payment rights is not effective and
a structured settlement obligor or annuity issuer is not required to make any
payment directly or indirectly to any transferee of structured settlement
payment rights unless the transfer has been approved in advance in a final
court order based on express written findings by the court subject to Section
10139.5. (See Ins. Code, § 10139.5,
subd. (a).)
b. Determination
i. Ins. Code, § 10139.5, subd. (a)
The petition satisfies the entirety of the findings requirement set out
in Insurance Code section 10139.5, subdivisions (a)(1) to (a)(6). These
findings, which the Court expressly makes by the following language, are that:
(1) The transfer is fair and reasonable in the
best interest of the payee, taking into account
the welfare and
support of the payee’s dependents. Elijah Husser is collecting $15,000.00 for
future payment of $40,000.00, the discounted present value of which is $28,385.15.
Elijah Husser Jr. is an employed twenty-eight-year-old with one two-year-old
child, is experiencing financial hardship, and would use the transfer funds to pay
off credit debt and a personal loan, to move into a larger apartment, to pay
car maintenance expenses, and to start a college tuition fund for his child. (See Ins. Code, § 10139.5, subd. (a)(1)
[framed by Ins. Code, § 10139.5, subds. (b)(1)-(15)]; see also 9/24/24 Amended
Exhibit A, California Purchase Contract, p. 12; 9/20/24 Husser Decl., ¶¶ 8,
11.)
(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, in writing, the opportunity to receive the advice. (See Ins. Code, § 10139.5, subd. (a)(2); see
also 9/24/24 Amended Exhibit A, California Purchase Contract [Elijah Husser was
advised to obtain independent legal advice and professional tax advice about
the sale of the Purchased Payments]; 10/07/24 Husser Decl., ¶ 12 [“I did not
receive independent legal or financial advice regarding the proposed
transaction. A copy of the waiver is attached to Exhibit ‘E’ of the
petition.”].)
(3)
The
transferee, i.e., J.G. Wentworth, has complied with the notification
requirements
pursuant to paragraph
(2) of subdivision (f), has provided the payee with a disclosure form that
complies with Section 10136, and the transfer agreement complies with Sections
10136 and 10138. (See Ins. Code, § 10139.5, subd. (a)(3); see also Ins. Code, §
10136, subds. (b)-(e) discussion supra & Ins. Code, § 10139.5, subd. (f)
discussion infra at “Second, …” & 9/24/24 Amended Exhibit A, California
Purchase Contract.)
(4) The transfer does not contravene any applicable statute or the order
of any court or other government authority. (See Ins. Code, § 10139.5, subd.
(a)(4).)
(5) The payee, Elijah Husser, understands the terms of the transfer
agreement, including the terms set forth in the disclosure statement required
by Section 10136. (See Ins. Code, § 10139.5, subd. (a)(5); see also 10/07/24 Husser
Decl., ¶ 13 [“I understand the terms of the transfer agreement, including the
terms set forth in the disclosure statement …”].)
(6) Elijah Husser understands and does not wish to exercise the right to
cancel the transfer agreement. (See Ins. Code, § 10139.5, subd. (a)(6); see also
10/07/24 Husser Decl., ¶ 13 [“I … do not wish to exercise my right to cancel
the agreement”].)
ii. Ins. Code, § 10139.5, subd. (c)
The amended petition satisfies all
the payee information required from Section 10139.5, subdivision (c) as follows
(see Ins. Code, § 10139.5, subd. (c)):
(1) Included the payee’s name and
age. (See Ins. Code, § 10139.5, subd.
(c)(1); see also 10/07/24 Husser Decl., p. 1:19-20 [Elijah Husser] &
[28 years old].)
(2) Included the payee’s marital
status, and, if married or separated, the name of the payee’s spouse. (See Ins. Code, § 10139.5, subd. (c)(2); see
also 10/07/24 Husser Decl., ¶ 8 [“I am not married.”].)
(3) Included the names, ages, and
place or places of residence of the payee’s minor children or other dependents,
if any. (See Ins. Code, § 10139.5,
subd. (c)(3); see also 10/07/24 Husser Decl., ¶ 8 [“one minor child”; “A.H.”; “2
years old”].)
(4) Included the amounts and
sources of the payee’s monthly income and financial resources and, if presently
married, the amounts and sources of the monthly income and financial resources
of the payee’s spouse. (See Ins. Code,
§ 10139.5, subd. (c)(4); see 10/07/24 Husser Decl., ¶ 8 [“I am employed and
work approximately 96 to 128 hours every two weeks, earning $24.50 per hour”].)
(5) Included information permitting
the determination of whether the payee is currently obligated under any child
support or spousal support order, and, if so, the names, addresses, and
telephone numbers of any individual, entity, or agency that is receiving child
or spousal support from the payee under that order or that has jurisdiction
over the order or the payments in question. (See Ins. Code, § 10139.5, subd. (c)(5); see also 10/07/24 Husser Decl., ¶
8 [“I am not married”; “I do not have any court-ordered child support
obligations”].)
However, the Court notes that
there is nothing in the declaration specifying that Mr. Husser was never
married, or more to the point, that he has no obligation for spousal support.
The Court would accept sworn testimony to that effect at the time of the
hearing.
(6) Included information
regarding previous transfers or attempted transfers, as described in paragraph
(11), (12), or (13) of subdivision (b). (See Ins. Code, § 10139.5, subd. (c)(6) [framed by Ins. Code, §
10139.5, subds. (b)(11)-(13), requiring information only for petitions in last
five years]; see
also 10/07/24 Husser Decl., ¶
9 [five prior petitions since 2014, three approved, with case numbers and
transfer information provided].)
iii. Ins. Code, § 10139.5, subd. (f)
The amended petition satisfies the
requirements of Section 10139.5, subdivision (f) as follows (see Ins. Code, § 10139.5, subd. (f)):
First, the transfer agreement satisfies the requirements of Section
10139.5, subdivision (f)(1), because Petitioner J.G. Wentworth made the instant
petition and the petition was brought in the county in which the payee, Elijah Husser, resides. (See Ins. Code, § 10139.5, subd. (f)(1); see 9/20/24
First Amended Verified Petition, p. 1 [showing Petitioner J.G. Wentworth
brings this Petition]; 10/07/24 Husser
Decl., ¶ 1 [“I reside in Los Angeles County, California”].)
Second, the petition satisfies the
requirements of Section 10139.5, subdivision (f)(2).
Formal notice of this transfer and
a copy of the petition itself was filed by J.G. Wentworth with the Court and
served on all interested parties no later than September 25, 2024—i.e., original
petition, notice, first amended petition, payee declaration, notice of case
assignment, and proof of service were served on Elijah Husser, the annuity
issuer, and the annuity obligor. (See Ins. Code, § 10139.5, subd. (f)(2)
[notice of the proposed transfer and the petition for its authorization to be
filed with the court and served on all interested parties within 20 days of
hearing]; see also 9/05/24 Proof of Service.) While the Supplemental Exhibit ‘D,’
Notice of Errata, Declaration of Payee and accompanying proofs of service were
not filed with the Court until October 7, 2024—i.e., eight days prior to this
hearing—The Supplemental Exhibit D makes a minor correction to align with Elijah
Husser’s declaration regarding how he intends to use the transfer funds. No
opposition appears in the record. Based on these circumstances, the Court
proceeds with a determination on the merits.
Further, the notice and petition
have attached all the necessary documents required from this subdivision. (See
Ins. Code, § 10139.5, subds. (f)(2)(A)-(L).) The notice and petition:
(A) Include a copy of the instant
petition and need not attach prior petitions made outside of five years from
the date of this petition. (See Ins. Code, § 10139.5, subd. (f)(2)(A) [framed
by Ins. Code, § 10139.5, subd. (c)(6), which in turn is framed by Ins. Code, §
10139.5, subds. (b)(11)-(13), requiring information about petitions in last
five years]; see also 10/01/24 Husser Decl., ¶ 9 [five prior petitions since 2014,
three approved, with case numbers and transfer information provided].)
(B) Include a copy of the proposed
transfer agreement and disclosure form required by paragraph (3) of subdivision
(a). (See Ins. Code, § 10139.5, subd.
(f)(2)(B); see also 9/24/24 Amended Exhibit A, California Purchase Contract &
9/20/24 First Amended Verified Petition, Ex. B, California Disclosure
Statement.)
(C) Include information regarding Elijah
Husser’s dependents and their ages. (See Ins. Code, § 10139.5, subd. (f)(2)(C); see also 10/07/24 Husser Decl., ¶
8 [not married; one minor child, age two years].)
(D) Include a copy of the
disclosure required in subdivision (b) of Section 10136. (See Ins. Code, § 10139.5, subd. (f)(2)(D); see
also 9/20/24 First Amended Verified Petition, Ex. B, California Disclosure
Statement.)
(E) Include copies of the annuity
contract, any qualified assignment agreement, and underlying structured
settlement agreement, if available, and if not available, a showing of
reasonable efforts to locate and secure a copy of the document have been made,
including making inquiry with the payee. (See Ins. Code, § 10139.5, subds. (f)(2)(E)-(H); see also 10/7/24 Supplemental
Exhibit ‘D.’)
(F) Include copies of the proofs of
service made for notice of this petition. (See Ins. Code, § 10139.5, subd. (f)(2)(I); see also 9/5/24 Proofs of Service.)
(G) Include a notification that any
interested party is entitled to support, oppose, or otherwise respond to the
transferee’s petition, either in person or by counsel, by submitting written
comments to the court or by participating in the hearing. (See Ins. Code, § 10139.5, subd. (f)(2)(J); see
also 9/3/24 First Amended Verified Petition, p. 5; 9/5/24 Proof of Service.)
(H) Include a notification of the
time and place of the hearing and notification of the manner in which and the
time by which written responses to the petition must be filed, which may not be
less than 15 days after service of the transferee’s notice, in order to be
considered by the court. (See Ins.
Code, § 10139.5, subd. (f)(2)(K); see also 9/3/24 First Amended Verified Petition,
p. 5; 9/5/24 Proof of
Service.)
(I) If the payee entered into the
structured settlement at issue within five years prior to the date of the
transfer agreement, then the transferee shall provide the following notice to
the payee’s attorney of record at the time the structured settlement was
created, if the attorney is licensed to practice in California, at the
attorney’s address on file with the State Bar of California.
iv. Ins. Code, § 10139.5, subd. (g)
The petition satisfies the
requirements of Section 10139.5, subdivision (g) requiring that transferees
bear the costs of transfer petitions of structured settlement rights. (See Ins.
Code, § 10139.5, subd. (g); see also 9/24/24
Amended Exhibit A, California Purchase Contract [“We have charged [Elijah
Husser] for the following expenses: [¶] … $0.00 [¶] for a total of $0.00 in
expenses”] & 9/20/24 First Amended
Verified Petition, Ex. B, California Disclosure Statement, p. 1 [same].)
v. Ins. Code, § 10139.5, subd. (h)
The amended petition satisfies the requirements of
Section 10139.5, subdivision (h) because, when the petition was filed,
Petitioner advised Elijah Husser of his right to seek independent counsel and
financial advice in connection with this transfer petition and advised Elijah
Husser of his right to a reimbursement of $1,500 for incurring such costs. (See Ins. Code, § 10139.5, subd. (h); see also
9/24/24 Amended Exhibit A, California Purchase Contract [Elijah Husser was
advised to receive independent representation and elected not to seek out such
independent professional representation]; 10/7/24 Husser Decl., ¶ 12 [“I did
not receive independent legal or financial advice regarding the proposed
transaction. A copy of the waiver is attached to Exhibit ‘E’ of the
petition.”].)
C.
Requirements Conclusion
The Court seeks confirmation that there are no spousal support obligations.
III. Conclusion
Subject to confirmation that there are no spousal support obligations, Petitioner J.G. Wentworth Originations, LLC’s Verified Petition for Transfer of Payment Rights is GRANTED.