Judge: Jon R. Takasugi, Case: 23STCP04168, Date: 2024-01-02 Tentative Ruling

Case Number: 23STCP04168    Hearing Date: January 2, 2024    Dept: 17

Superior Court of California

County of Los Angeles

DEPARTMENT 17

TENTATIVE RULING

Petitioner’s petition to approve the transfer of structured settlement payments is GRANTED.

A petition for transfer of structured settlement payment rights must comply with insurance Code §§10136, 10137, 10138, 10139, 10139.3, and 10139.5.

Legal Standard

This Petition is governed by Insurance Code sections 10134–10139.5. (See also 321 Henderson Receivables Origination LLC v. Sioteco (2009) 173 Cal.App.4th 1059, 1066.)  Under Insurance Code section 10137, 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 and will not contravene other applicable law, and the court has reviewed and approved the transfer as provided in Section 10139.5. 

Pursuant to Insurance Code section 10139.5(a), the Court must make the following express findings as to a transfer of structured settlement payment rights: 

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 receipt of that advice in writing. 

3.                  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 reasonably 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. 

The transfer agreement is effective only upon approval in a final court order. (Ins. Code, § 10139.5, subd. (a).)   

Discussion

In exchange for $36,359.35, Payee has agreed to transfer and assign the right for $65,848.12 in structured payments which consisted of; (1) 8 monthly payments of $665.00 each, beginning on January 2, 2025 and ending on August 2, 2025; and (2) 81 monthly payments of $684.96 each, increasing at 3% annually, beginning on September 2, 2025 and ending on May 2, 2032.

            In order to approve a transfer of structured settlement payments, the Court must determine that the transfer of the structured settlement payments is fair and reasonable. (Henderson, supra, 173 Cal.App.4th at p. 1066.)

            Petitioner Banks’s declaration provides the following information: Banks is 31 years old. (Banks Decl. ¶ 8.) He is unmarried, has no children, and is employed earning around $5,000-$6,000 a month. (Ibid.) Banks is currently experiencing financial hardship and states that if approved, “I will use the money received from the proposed settlement for home renovations, purchase a used reliable vehicle, and pay off outstanding debt. I had recently just purchased a house, and I would like to repair the fences. My fiancé and I need another vehicle for transportation to and from work. Lastly, I would like to pay of $8,000.00 in credit card debt.” (Id. ¶ 11.)

This Petition complies with all of the statutory obligations required by Insurance Code sections 10134 - 10139.5, including the following: 

1.      J.G. Wentworth has provided Banks with a disclosure form that complies with section 10136, subdivision (b);

2.      The written transfer agreement complies with section 10136, subdivision (c) and section 10138 (Pet.); 

3.      Bank has been advised in writing to seek independent professional advice regarding the transfer and has waived his opportunity to obtain this advice;

4.      JG Wentworth has complied with the requisite notification requirements set forth by section 10139, subdivision (a) and section 10139.5, subdivision (f); 

5.      The transfer agreement does not include any provisions prohibited by section 10138; 

6.      Bank reasonably understands the terms of the transfer agreement, including the terms set forth in the disclosure statement required by Section 10136; and 

7.      Bank understands and does not wish to exercise his right to cancel the transfer agreement. 

The transfer appears to be fair and reasonable and in the best interest of Banks. The transfer complies with the requirements of Insurance Code sections 10134 - 10139.5, and it will not contravene other applicable law. Moreover, the court has reviewed and approved the transfer as provided in Section 10139.5.

            Based on the foregoing, Petitioner’s petition to approve the transfer of structured settlement payments is granted.

It is so ordered.

Dated:  January     , 2024

   Hon. Jon R. Takasugi
   Judge of the Superior Court

Parties who intend to submit on this tentative must send an email to the court at smcdept17@lacourt.org by 4 p.m. the day prior as directed by the instructions provided on the court website at www.lacourt.org.  If a party submits on the tentative, the party’s email must include the case number and must identify the party submitting on the tentative.  If all parties to a motion submit, the court will adopt this tentative as the final order.  If the department does not receive an email indicating the parties are submitting on the tentative and there are no appearances at the hearing, the motion may be placed off calendar.