Judge: Jon R. Takasugi, Case: 24STCP02312, Date: 2024-09-18 Tentative Ruling

Case Number: 24STCP02312    Hearing Date: September 18, 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 $80,000 Payee has agreed to transfer and assign the right for: 129 monthly payments of $1,000.00 beginning 8/1/2024 through and including 4/1/2035. (The Assigned Payments).

            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 R.C.’s declaration provides the following information: Transferor is 33 years old and single (R.C. Decl. ¶ 1); Transferor has a thirteen-year old child who resides with him (R.C. Decl. ¶ 8); Transferor is employed earning $3,000 a month, and receiving payments of $2,000 per month from annuity; Transferor does not have any court-ordered child support obligations. Transferor indicates that if approved, he will use the money received from the proposed settlement to remodel his kitchen and bathrooms, update the entire house's electrical system, and settle the outstanding bills left by his late father.

 Transferor has completed a previous transaction on 6/24/2022 through the Los Angeles County Court, transferring 148 monthly payments of $4,168.51 beginning 1/1/2023 through and including 4/1/2035 to J.G. Wentworth Originations of California, LLC. From the settlement, he received $397,000. However, Transferor has also had previous transactions involving structured settlement payments dismissed or withdrawn. On June 20, 2022, a petition was dismissed, and on July 16, 2024 a petition was denied. However, a review of the denied petition in 24STCP01678 indicates that the petition was denied, without prejudice, because the payee declaration was untimely filed, rather than on the merits.

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 R.C. 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.      R.C. has been advised in writing to seek independent professional advice regarding the transfer and has waived her 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.      R.C. reasonably understands the terms of the transfer agreement, including the terms set forth in the disclosure statement required by Section 10136; and 

7.      R.C. understands and does not wish to exercise her right to cancel the transfer agreement. 

The transfer appears to be fair and reasonable and in the best interest of R.C. 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:  September     , 2024

   Hon. Jon R. Takasugi
   Judge of the Superior Court