Judge: Armen Tamzarian, Case: 24STCP02884, Date: 2024-11-14 Tentative Ruling

Case Number: 24STCP02884    Hearing Date: November 14, 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 J. Runia.

Insurance Code section 10137 provides:

A transfer of structured settlement payment rights is void unless a court reviews and approves the transfer and finds the following conditions are met:

(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.

(b) The transfer complies with the requirements of this article, will not contravene other applicable law, and the court has reviewed and approved the transfer as provided in Section 10139.5.

Insurance Code section 10139.5, subdivision (b) requires the court to consider 15 enumerated factors in determining whether this transfer should be approved.  After considering all relevant factors and the totality of the circumstances, the court finds the transfer is fair, reasonable, and in payee J. Runia’s best interest.

Under the transfer agreement, J.G. Wentworth Originations, LLC will pay Runia $17,500 in exchange for the right to 24 payments of $4,233.91 in 2045 and 2046.  The deal is equivalent to a loan at a rate of 8.63% interest.  Runia seeks to use the payment now “to pay off overdraft fees and contribute towards credit card debt” of about $45,000.  (Runia Decl., ¶ 11.)  Paying off high-interest debt is in Runia’s best interest. 

Express Written Findings

Insurance Code section 10139.5(a) requires the court’s order of approval to include six “express written findings.”  The court hereby makes the following express written findings as required under Insurance Code section 10139.5:

(1) The transfer is in the best interest of payee Runia, taking into account the welfare and support of the payee’s dependents.  Runia intends to use the money to pay off high-interest debt.  (Runia Decl., ¶ 11.)  He is unmarried and has no minor children.  (Id., ¶ 8.)

(2) Payee Runia has been advised in writing by the transferee to seek independent professional advice regarding the transfer and knowingly waived, in writing, the opportunity to receive the advice.  (Runia Decl., ¶ 12, petition Ex. E.) 

(3) The transferee has complied with the notification requirements pursuant to paragraph (2) of subdivision (f), the transferee has provided the payee with a disclosure form that complies with Section 10136, and the transfer agreement complies with Sections 10136 and 10138.

(4) The transfer does not contravene any applicable statute or the order of any court or other government authority.

(5) Payee Runia understands the terms of the transfer agreement, including the terms set forth in the disclosure statement required by Section 10136.

(6) Payee Runia understands and does not wish to exercise the right as payee to cancel the transfer agreement.

Disposition

The court hereby grants petitioner J. G. Wentworth Originations, LLC’s petition for approval for transfer of payment rights from payee/transferor J. Runia.  The court hereby approves the proposed “California Purchase Contract” attached to the first amended petition as Exhibit A.