Judge: Gregory Keosian, Case: 22STCP04506, Date: 2023-02-08 Tentative Ruling

Case Number: 22STCP04506    Hearing Date: February 8, 2023    Dept: 61

J.G. Wentworth Originations, LLC’s Amended Petition for Approval of Transfer of Payment Rights is GRANTED.

I.       TRANSFER PETITION

Insurance Code section 10136 states:

(a) No direct or indirect transfer of structured settlement payment rights by a payee to which this article 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 this section are satisfied.

(b) Ten or more days before the payee executes a transfer agreement, the transferee shall provide the payee with a separate written disclosure statement, accurately completed with the information that applies to the transfer agreement, in substantially the following form . . . .

In order for a court to approve such transfer, certain statutory provisions as set forth in Section 10139.5 must be met. These include findings of the following:

(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.

A court must also find that the transfer is “fair and reasonable” in light of the payee’s best interest and their dependents. (Ins. Code § 10137.)

Payee Rita Baca (Payee) submits a declaration in support of this Petitioner J.G. Wentworth Originations, LLC’s (Petitioner) petition to transfer Payee’s payment rights to Petitioner J.G. Wentworth Originations, LLC (Petitioner). Payee is 26 years old, single, and without dependents. (Payee Decl. ¶¶ 1, 8.) By the proposed transfer, Payee is to receive a lump sum of $82,000, in exchange for the payment rights to a payment she is due to receive on September 24, 2026, in the amount of $127,807.05. (Payee Decl. ¶ 5.) Payee states that the structured settlement at issue was not intended to pay for future medical care or necessary living expenses. (Payee Decl. ¶¶ 6–7.) Payee states that she is currently experiencing financial hardship and intends to use Petitioner’s lump sum payment to pay off her vehicle. (Payee Decl. ¶ 11.) Payee completed a previous structured settlement transaction in June 2020 . (Payee Decl. ¶¶ 9–10.)

Payee has received and signed a disclosure form in compliance with Insurance Code § 10136, and states that they have read and understood the transfer agreement, and do not wish to cancel it. (Payee Decl. ¶¶ 13–14; Petiion Exh. A, B.) The disclosure form states that the discounted present value of the payment being transferred is $105,607.23, and if Payee instead obtained a loan in the amount of the $82,000 lump sum and paid back the loan with the installment to be transferred, the interest on the loan would be 14.02% per year.

Based on the above, the court finds that the transfer is fair and reasonable in light of Payee’s best interest, that the Payee has been advised to seek independent counsel, that the required disclosure form has been provided, that the transfer does not contravene any statute or court order, that the Payee understands the terms of the transfer, and that the Payee does not wish to cancel the agreement. 

The Petition for Approval of Transfer of Structured Settlement Payment Rights is GRANTED.