Judge: Armen Tamzarian, Case: 23STCP03935, Date: 2024-01-17 Tentative Ruling

Case Number: 23STCP03935    Hearing Date: January 17, 2024    Dept: 52

Petitioner J.G. Wentworth Originations, LLC’s Verified Petition for Approval of Transfer of Payment Rights

Petitioner J.G. Wentworth Originations, LLC petitions for approval of transfer of structured settlement rights by payee Cecily Hunter.  “A transfer of structured settlement payment rights is void unless a court reviews and approves the transfer and finds … [t]he 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.”  (Ins. Code, § 10137(a).)  To approve such a transfer, the court must make “express written findings” including that “[t]he transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents.”  (Ins. Code, § 10139.5(a)(1).) 

            The court cannot make that express written finding.  Payee Cecily Hunter agreed to transfer her right to a payment of $76,116.95 on December 9, 2024.  (Petition, p. 7; Ex. A, § 2.A.)  The court notes, however, that the order approving compromise of the claim in 2004 states Hunter will be paid $86,116.95 on that date. (Ex. D, pp. 4 -5.)  Under the transfer agreement, petitioner will pay Hunter $58,940.65.  (Pet., p. 7; Ex. A, § 10.)  Hunter therefore “will be paying the equivalent of an interest rate of 24.99% per year.”  (Ex. A, § 10.) 

The rate of 24.99% is too high.  If payee Cecily Hunter waits until December 9, 2024, she will receive $17,176.30 more than petitioner agreed to pay her now.  This transfer is not fair and reasonable and not in Hunter’s best interest.  Waiting 11 months and receiving an extra $17,176.30 is in her best interest.  Petitioner shows no basis to conclude otherwise.

Disposition

The court hereby denies petitioner J.G. Wentworth Originations, LLC’s petition for approval for transfer of payment rights.