Judge Daniel M. Crowley, Case Number: 24STCP02159, Date: 2024-10-04 Tentative Ruling

All parties are urged to meet and confer with all parties concerning this tentative ruling to see if they can reach an agreed-upon resolution of their matter.  If you are able to reach an agreement, please notify the courtroom staff in advance of the hearing if you wish to submit on the tentative ruling rather than argue the motion by notifying the court by e-mailing the court at: SMCDEPT71@lacourt.org. Do not click on the email address, either copy and paste it or type it into your email. Include the word "SUBMITS" in all caps and the Case Number in the Subject line. In the body of the email, please provide the date and time of the hearing, your name, your contact information, the party you represent, and whether that party is a plaintiff, defendant, cross-complainant, cross-defendant, claimant, intervenor, or non-party, etc.

            Please be advised that if you submit on the tentative and elect not to appear at the hearing, the opposing party may still appear at the hearing and argue the matter, and the court could change its tentative based upon the argument.  Unless you receive a submission from all other parties in the matter, you should assume that others might appear at the hearing to argue. If you submit, but still intend to appear, include the words "SUBMITS, BUT WILL APPEAR" in the Subject line.

            If you elect to argue your matter, you are urged to do so remotely, via Court-Connect. If the moving party fails to appear and/or submit to the Court’s tentative ruling, the Court will take the matter off calendar.

            Note that once the Court has issued a tentative, the Court has the inherent authority not to allow the withdrawal of a motion and to adopt the tentative ruling as the order of the court.

If you submitted a courtesy copy of your papers containing media (such as a DVD or thumb drive), unless you request the return of the media in your papers, the court will destroy it following the hearing of your matter.

Petitioner J.G. Wentworth Originations, LLC’s unopposed amended petition for approval of transfer of payment rights is granted.

Petitioner J.G. Wentworth Originations, LLC (“JG Wentworth”) (“Petitioner”) (“Transferee”) petitions unopposed for this Court to approve its Amended Petition and enter an order in accordance with Insurance Code §§10143 et seq. approving this transfer of certain structured settlement payment rights. (Amended Petition, pg. 1.)

Insurance Code §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) [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 [; and] (b) [t]he 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.” (Ins. Code §10137.) The transfer agreement is effective only upon approval in a final court order. (Ins. Code §10139.5(a).)

(1) The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents.

(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.

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

(6) The payee understands and does not wish to exercise the payee’s right to cancel the transfer agreement.

Every petition for approval of a transfer of structured settlement payment rights, except as provided in subdivision (d), shall include, to the extent known after the transferee has made reasonable inquiry with the payee, all of the following:

(2) The payee’s marital status, and, if married or separated, the name of the payee’s spouse.

(3) The names, ages, and place or places of residence of the payee’s minor children or other dependents, if any.

(4) 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.

(5) 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.

(6) Information regarding previous transfers or attempted transfers, as described in paragraph (11), (12), or (13) of subdivision (b). The transferee or payee may choose to provide this information by providing copies of pleadings, transaction documents, or orders involving any previous attempted or completed transfer or by providing the court a summary of available information regarding any previous transfer or attempted transfer, such as the date of the transfer or attempted transfer, the payments transferred or attempted to be transferred by the payee in the earlier transaction, the amount of money received by the payee in connection with the previous transaction, and generally the payee’s reasons for pursuing or completing a previous transaction.

In or about February 23, 1998, Payee Jawhar Dunn (“Dunn”) (“Payee”) became entitled to certain structured settlement payments resulting from a claim for damages arising in connection with a personal injury claim. (Amended Petition ¶¶2-3.) The settlement Payee agreed to provides for periodic structured payments including, but not limited to, (A) 1 payment of $65,000.00 on March 1, 2039, and (B) 1 payment of $211,923.00 on March 1, 2042. (Amended Petition ¶4.)

The “annuity issuer” who has issued an insurance contract used to fund the structured settlement payments is Prudential Insurance Company of America. (Amended Petition ¶5.) The “structured settlement obligor” with respect to the aforementioned structured settlement payments is Prudential Assigned Settlement Services Corp. (Amended Petition ¶6.) Payee has agreed to sell, and Transferee, JG Wentworth, has agreed to purchase certain lump sum payments as referenced within their proposed Purchase Agreement. (Amended Petition ¶6, Exh. A.)

All of this information has been properly disclosed to Payee by way of the disclosure form in compliance with Insurance Code §10136, as required by Insurance Code §10139.5(a)(3). (Amended Petition ¶9(A), Exh. B.) Payee was also advised in writing to seek independent legal, tax, and financial professional advice. (Amended Petition, pg. 4 at Exh. E.) Payee chose not to seek an independent professional’s advice. (Amended Petition, pg. 4 at Exh. E §A.) Therefore, Petitioner has complied with the statutory disclosure requirements in Insurance Code §10139.5(a)(2).

The transfer agreement also complies with Insurance Code §§10136 and 10138 as required by Insurance Code §10139.5(a)(3). The transfer agreement does not contravene any applicable statute or order of any court or other governmental authority. (Ins. Code §10139.5(a)(4).) Petitioner has also provided copies of the Annuity Contract and Qualified Assignment Agreement and the underlying Settlement Agreement. (Amended Petition, Exhs. C, D.)

First, the Payee is 47 years old. (Decl. of Payee ¶8.) The Payee has also provided that his physical address in Los Angeles. (Decl. of Payee ¶8.) Therefore, the petition meets the requirements of Insurance Code §10139.5(c)(1).

Second, the Payee’s marital status is single and unmarried. (Decl. of Payee ¶8.) Therefore, the petition meets the requirements of Insurance Code §10139.5(c)(2).

Third, the Payee has one minor child, H.D., who is eight years old and resides with the Payee. (Decl. of Payee ¶8.) Therefore, the petition meets the requirements of Insurance Code §10139.5(c)(3).

Fourth, the Payee declares that he is self-employed and works approximately 40-55 hours per week earning approximately $4,000.00 per month. (Decl. of Payee ¶8.) Therefore, the petition meets the requirements of Insurance Code §10139.5(c)(4).

Fifth, the Payee declares that he does not have any court-ordered child support obligations. (Decl. of Payee ¶8.) Therefore, the petition meets the requirements of Insurance Code §10139.5(c)(5).

Sixth, the Payee declares has previously attempted and successfully transferred payments. (See Decl. of Payee ¶¶9-10.) The Payee declares the following:

I have completed a previous transaction on 12/14/2018, through the Los Angeles County Court (Case # 18BBCP00024), transferring one payment of $20,000.00 due on 03/01/2030 and one payment $30,000.00 due on 03/01/2033 to J.G. Wentworth Originations, LLC. From the settlement, I received $20,700.00.

I have completed a previous transaction on 5/20/2019, through Los Angeles County Court (Case # 19BBCP00131), transferring one lump sum payment portion of $50,000.00 out of a total lump sum payment of $100,000.00, due on March 1, 2036 to J.G. Wentworth Originations, LLC. From the settlement, I received $16,000.00.

I have completed a previous transaction on 11/16/2016, through Los Angeles County Court (Case # BS164502), transferring one payment of $5,000.00 due on 03/01/2021, one payment of $5,000.00 due on 03/01/2024, one payment of $5,000.00 due on 03/01/2027, one payment of $10,000.00 due on 03/01/2030, and one lump sum payment portion of $10,000.00 due on 03/01/2030 to J.G. Wentworth Originations, LLC. From the settlement, I received $14,500.00.

I have completed a previous transaction on 11/16/2015, through Los Angeles County Court (Case # BS156368), transferring one payment of $40,000 due on 03/01/2024, one payment of $45,000 due on 03/01/2027, one payment of $30,000 due on 03/01/2030, and one payment of $40,000 due on 03/01/2033 to J.G. Wentworth Originations, LLC. From the settlement, I received $36,737.

I have completed a previous transaction on 09/12/2013, through the Los Angeles County Court (Case # BS144452), transferring one payment of $35,000 due on 03/01/2024 and one payment of $25,000 due on 03/01/2027 to J.G. Wentworth Originations, LLC. From the settlement, I received $25,800.

I have completed a previous transaction on 04/25/2013, through Los Angeles County Court (Case # BS141371), transferring one payment of $7,188.77 due on 03/01/2015, one payment of $15,000 due on 03/01/2018, and one payment of $15,000 due on 03/01/2021 to Peachtree Settlement Funding LLC. From the settlement, I received $17,750.

I have completed a previous transaction on 10/05/2011, through the Los Angeles County Court (Case # BS132636), transferring one payment of $10,000.00 out of the total payment of $40,000.00, due on 03/01/2015; one payment of $20,000.00 out of the total payment of $40,000.00, due on 03/01/2018; and one payment of $20,000.00 out of the total payment of $40,000.00 due on 03/01/2021 to Peachtree Settlement Funding LLC. From the Settlement I received $25,000.00.

I have completed a previous transaction on 05/29/2001, transferring 1 payment of $2,000.00 coming on 03/01/2003, 1 payment of $2,500.00 coming on 03/01/2006, 1 payment of $13,500.00 coming on 03/01/2009, 1 payment of $17,500.00 coming on 03/01/2012 and 1 payment of $22,811.23 coming on 03/01/2015 to Peachtree Settlement Funding LLC. From the settlement, I received $9,024.00.

I have completed a previous transaction on 01/22/2001, transferring 1 payment of $10,000.00 due on 03/01/2003, 1 payment of $12,500.00 due on 03/01/2006 and 1 payment of $7,500.00 to Peachtree Settlement Funding LLC. From the settlement, I received $10,150.00.

I have completed a previous transaction on 01/31/2024, through Los Angeles County Court (Case # 23STCP04627) transferring 1 payment of $50,000.00 due on 03/01/2036 and 1 payment of $50,000.00 due on 03/01/2039 to JG Wentworth Originations LLC. From the Settlement, I received $29,000.00.

(Decl. of Payee ¶9.) Accordingly, Petitioner has not provided all of the information required by Insurance Code §10139.5(c).¿

You have agreed to sell to the transferee future payments totaling Two Hundred Seventy-Six Thousand Nine Hundred Twenty-Three Dollars and 00/100 Cents dollars ($276,923.00) in exchange for a purchase price of Fifty-Five Thousand One Hundred Forty-Seven Dollars and 42/100 Cents dollars ($55,147.42).

Those future payments have a discounted present value equal to One Hundred Nine Thousand Nine Hundred Ninety-Seven Dollars and 46/100 Cents dollars ($109,997.46). This is the value of your structured settlement in current dollars. This amount was calculated by applying the discount rate of 5.60% percent utilized by the Internal Revenue Service to value annuities in probate proceedings.

The purchase price to be paid to you was calculated using a discount rate of 10.01% percent.

The purchase price payable to you is less than the present value of the future payments stated above because the discount rate of your transaction is greater than the rate utilized by the Internal Revenue Service.

Pursuant to Insurance Code §10139.5(b)(2), the Payee declares that he is currently experiencing financial hardship and if approved, he plans to use the money received from the proposed settlement to put a down payment on a house. (Decl. of Payee ¶11.) The Amended Petition states that the funds received from the transaction contemplated in the Purchase Agreement can be better used today to provide for the foregoing, rather than to provide support to Payee several years from now. (Amended Petition, pg. 4.) The Payee declares, “[w]hen the original settlement was completed, the future period payment(s) that are the subject of the proposed transfer were not intended to pay for the future medical care and treatment relating to the incident that was the subject of the settlement. The settlement was monetary in its entirety.” (Decl. of Payee ¶6.) Further, the Payee declares, “[w]hen the original settlement was completed, the future periodic payments that are the subject of the proposed transfer were solely monetary in nature and were not intended to provide for necessary living expenses.” (Decl. of Payee ¶7.)

The Court finds the transfer is in the best interest of the Payee, taking into account the welfare and support of Payee’s dependent. The Court determines the transfer is fair and reasonable because the underlying settlement was intended as compensation for a personal injury claim and were not intended to pay for future medical care and treatment, nor were they intended to provide for necessary living expenses; therefore the instant transfer does not deprive the Payee of funds that were set aside for future essential needs. (See Amended Petition, pg. 7.) The Payee was fully informed of his rights and has knowingly waived independent professional advice regarding the transfer. (Amended Petition, Exh. E.)

Hon. Daniel M. Crowley

Judge of the Superior Court