Judge Gail Killefer, Case 23STCP00225 2023-03-01 Tentative Ruling

Judge: Gail Killefer, Case: 23STCP00225, Date: 2023-03-01 Tentative Ruling

Case Number: 23STCP00225 Hearing Date: March 1, 2023 Dept: 37

HEARING DATE: March 1, 2023

CASE NUMBER: 23STCP00225

CASE NAME: In re Tyler Thompson.

PETITIONER: JG Wentworth Originations, LLC

RESPONDING PARTY: None

TRIAL DATE: None

PROOF OF SERVICE: OK

MOTION: Petition for Approval of Transfer of Structured Settlement

OPPOSITION: None

REPLY: No opposition filed.

TENTATIVE: Petitioner’s Petition is granted. Petitioner is to give notice to all interested parties. Petitioner is to submit a proposed order granting the petition.

Petition

Petitioner J.G. Wentworth Originations, LLC petitions the court pursuant to Insurance Code, § 10139.5(f)(1) to transfer payee Tyler Thompson’s (“Payee”) structured settlement.

Under the terms of the Transfer Agreement, Payee will sell their interest in payments due under an existing structured settlement that Payee received when Payee was a minor as compensation for a wrongful death claim. Payee will sell the following interest to Petitioner/Transferee: “A) 1 payment of $ 11,496.75 on August 11, 2023 B) 1 payment of $ 11,496.75 on August 11, 2024 C) 1 payment of $ 11,496.75 on August 11, 2025, D) 1 payment of $ 11,496.75 on August 11, 2026, and E) 1 payment of $ 11,496.75 on August 11, 2027.” In exchange, Payee will receive $41,500.00 from Petitioner/Transferee. The equivalent interest rate of this transaction is 13.97% per year. (see Petition, Exhibit A, ¶10.)

Discussion

I. Procedural Requirements

Insurance Code, § 10139.3(b) states compliance with the requirements set forth in sections 10136, 10137, 10138 must be solely the responsibility of the transferee in any transfer of structured settlement payment rights. Subdivision (c) states a payee who proposes to make a transfer of structured settlement payment rights must not incur any penalty, must not forfeit any application fee or other payment, and must not otherwise incur any liability to the proposed transferee based on any failure of that transfer to satisfy the requirements of sections 10136, 10137, and 10138. Subdivision (d) provides that the transferee and any assignee must be liable to the structured settlement obligor and the annuity insurer for any and all taxes incurred as a consequence of the transfer or as a consequence of any failure of the transferee or assignee to comply with Insurance Code, section 10134, et seq. or the terms of the structured settlement agreement. Subdivision (e) provides that neither the annuity insurer nor the structured settlement obligor may be required to divide any structured settlement payment between the payee and any transferee or assignee or between two or more transferees or assignees. Subdivision (a) requires that none of the provisions of the article may be waived by the payee. The petition complies with this requirement. (See Pet. Ex. A.)

Insurance Code, § 10139.5(f)(2) requires 20 days’ notice of the hearing. The petition complies with the notice requirements.

Pursuant to Insurance Code § 10139.5(c): “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:

1. The payee's name, address, and age. Petition includes Payee’s name and age but states that Payee “reside[s] [in] Los Angeles County, California.” (See Declaration of Taylor Thompson (“Thompson Decl.”) ¶¶ 1,8.)

2. The payee's marital status, and, if married or separated, the name of the payee's spouse. Single. (Thompson Decl. ¶ 8.)

3. The names, ages, and place or places of residence of the payee's minor children or other dependents, if any. No dependents. (Id.)

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. Unemployed and still a student. (Thompson Decl. ¶ 8.)

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. No child support obligations. (Id.)

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.” Transferee has not completed previous transactions but has attempted previous transfers which were denied. (Thompson Decl. ¶¶ 9-11.)

II. Substantive Requirements

Pursuant to Insurance Code § 10139.5(a), “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 that:

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.

Best Interest of Payee Insurance Code § 10139.5(b) lists 15 factors for the court to consider in determining whether the transfer would be fair, reasonable, and in the payee’s best interests.

Payee is 25 years old, single, and alleges he is currently employed but facing financial hardship because of his move to Los Angeles for work. (Thompson Decl. ¶¶ 8-11.) Payee has no minors or dependents and no child or spousal support obligations. (Id.)

Payee does not affirm he received from the Purchaser a written disclosure statement no less than 10 days prior to signing the Transfer Agreement. However, Payee did affirm in signing the Disclosure Statement that he received the disclosure statement from Purchaser at least 10 days prior to signing the agreement. (Pet., Exh. A-B.) Payee is interested in using a portion of the proceeds to pay down rent and for a down payment for a residence in Los Angeles. (Thompson Decl. ¶ 11.) Payee attests that the intended purpose of the periodic payments was not to pay for medical care and that future medical care or treatment did not give rise to the settlement. (Thompson Decl. ¶ 6.)

On balance, the court finds that the transfer is in the best interest of Payee. (Ins. Code § 10139.5(a)(1).)

Advice to Seek Independent Professional Advice Payee attests that he was advised to seek independent professional advice and has knowingly waived the right to do so. (Pet., Exh. E.) Payee also attests that Purchaser did not provide legal or financial advice and that she did not rely on Purchaser for such advice. (Thompson Decl. ¶12.)

Insurance Code, § 10136(b) sets forth the required disclosures and the form of those disclosures. The disclosures given comply with this section. (Mot. Ex. B.)

Insurance Code, § 10136(c) sets forth the information required in the transfer agreement. The transfer agreement satisfies these requirements. (Mot. Ex. A.)

Insurance Code, § 10138 lists provisions that cannot be contained in a transfer agreement. The Transfer Agreement does not contain the delineated prohibited provisions. (Ex. A.)

For the reasons stated above, the transfer complies with Insurance Code section 10139.5(a)(3).

Contravention of Statute or Court Order There does not appear to be any applicable statute or court order contravened by this transaction.

Payee Understands Terms Including Disclosures Payee appears to understand the effect of this agreement. (Thompson Decl. ¶¶ 10-13.)

Payee’s Right to Cancel Payee appears to understand his right to cancel. (Thompson Decl. ¶13.)

For the reasons stated above, the Court finds that the transaction complies with all requirements set forth in Insurance Code § 10139.5(a)(1)-(6).

Because the transaction complies with all requirements set forth in Insurance Code § 10139.5(a)(1)-(6), the Court grants the Petition for Approval of Transfer of Structured Settlement Payment Rights under Insurance Code § 10134, et seq.

Petitioner to give notice to all interested parties.

Petitioner to submit a proposed order granting the petition.

Conclusion

Petitioner’s Petition is granted. Petitioner is to give notice to all interested parties. Petitioner is to submit a proposed order granting the petition.