Judge: Joseph Lipner, Case: 23STCP01970, Date: 2023-09-20 Tentative Ruling

Case Number: 23STCP01970    Hearing Date: September 20, 2023    Dept: 72

SUPERIOR COURT OF CALIFORNIA

COUNTY OF LOS ANGELES

DEPARTMENT 72

TENTATIVE RULING

Petitioner J.G. Wentworth Originations, LLC (“Petitioner”) filed an Amended Verified Petition (the “Petition”) for approval of transfer of structured settlement payment rights.

The Court GRANTS the Petition.

Background

          On July 6, 2023, Petitioner filed the Petition seeking approval of transfer of structured settlement payment rights.  Payee Vjeko Dusevic (“Dusevic”) will transfer to Petitioner future payments totaling $100,000.00 in exchange for a purchase price of $40,000.00. According to the Petition: (1) in or about September 2009, Dusevic, by and through their guardian became entitled to certain structured settlement payments resulting from a claim for damages arising in connection with a wrongful death claim (Petition at ¶ 3); (2) the settlement agreement agreed to by the transferor provides for periodic structured payments including, but not limited to, one payment of $100,000.00 on April 6, 2031 (Id. at ¶ 4); (3) the annuity issuer who has issued an insurance contract used to fund the structured settlement payments is John Hancock Life Insurance Company n/k/a John Hancock Life Insurance Company (USA) (Id. at ¶ 5); (4) the structured settlement obligor with respect to the aforementioned structured settlement payments is John Hancock Assignment Company (Id. at ¶ 6); (5) transferor has agreed to sell, and Petitioner has agreed to purchase a certain lump sum payment as referenced within their proposed purchase agreement (Id. at ¶ 7 and Exhibit A); and (6) all the provisions set forth in California Insurance Code, Sections 10134 through 10139.5 have been met or will be met prior to any scheduled hearing (Id at ¶ 9). 

          The Petition is unopposed. A review of the papers indicates that the Petition was served on all interested parties on July 6, 2023.

Discussion

          Compliance with California Insurance Code, Section 10139.5(f)(1)

Under California Insurance Code, Section 10139.5(f)(1), all petitions for approval of transfer of structured settlement payment rights must be filed by the transferee in the county where the payee is residing at the time of the agreement, or if the payee is domiciled outside of California, in the county of the settlement obligor or annuity issuer.

Here, the filed proof of service states that Dusevic’s address will be provided at the hearing. Dusevic’s declaration in support of the Petition states that Dusevic resides in Los Angeles County, California and provides Dusevic’s residence address, which is in the city of Rancho Palos Verdes.  (Dusevic Decl. at ¶¶ 1-2.)  Therefore, the Court finds that the Petition was filed in the correct county and venue is proper. 

Compliance with California Insurance Code, Section 10139.5(f)(2)

          California Insurance Code, Section 10139.5(f)(2) provides that not less than 20 days prior to the scheduled hearing on any petition for approval of a transfer of structured settlement payment rights under this article, the transferee shall file with the court and serve on all interested parties a notice of the proposed transfer and the petition for its authorization.  Included with the notice of the proposed transfer, a transferee must include a listing of each of the payee’s dependents, together with each dependent’s age.  (Cal. Ins. Code § 10139.5(f)(2)(C).)  Cal. Ins. Code § 10139.5(f)(2)(A) requires the transferee to file with court and serve on interested parties “[a] copy of the transferee’s current petition and any other prior petition, whether approved or withdrawn, that was filed with the court in accordance with paragraph (6) of subdivision (c).”  Information regarding previous transfers or attempted transfers may be provided by providing copies of pleadings, transaction documents, or orders involving any previous attempted or completed transfer or providing the court a summary of available information regarding any previous transfer or attempted transfer.  (Cal. Ins. Code § 10139.5(c)(6).) 

          The Petition includes the proposed transfer agreement (Petition at Exhibit A) and the disclosure form required by California Insurance Code, Section 10136(b) (Petition at Exhibit B). The declaration of Dusevic lists Dusevic’s dependents with the age of the dependent.  (Dusevic Decl. at ¶ 8.)  Petitioner has provided the Court with: (1) an affidavit from Dusevic that the Qualified Assignment cannot be located (Petition at Exhibit D); (2) evidence of the terms of the structured settlement agreement (Petition at Exhibits C and D.)

          Thus, the Petition complies with California Insurance Code, Section 10139.5(f)(2).  All procedural requirements have been satisfied.

Compliance with California Insurance Code, Section 10139.5

Under California Insurance Code, Section 10139.5, a transfer of structured settlement payment rights is not effective unless the transfer has been approved in advance in a final court order.  In order to approve the transfer, the Court must make the following findings pursuant to California Insurance Code, Section 10139.5:

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 that advice in writing.

3) The transferee has provided the payee with a disclosure form that complies with Insurance Code section 10136 and the transfer agreement complies with Insurance Code 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 Insurance Code section 10136.

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

According to the declaration of Dusevic in support of the Petition:

(1) Dusevic believes that it is in Dusevic’s best interest to enter into the transaction contemplated in the Purchase Agreement (Dusevic Decl. at ¶ 4); (2) Dusevic is transferring one payment of $100,000.00 on April 6, 2031 and, if approved, will receive $40,000.00 from the transaction (Id. at ¶ 5); (3) when the original settlement was completed, the future periodic payments that are the subject of the proposed transfer were not intended to pay for future medical care and treatment relating to the incident that was the subject of the settlement (Id. at ¶ 6); (4) when 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 (Id. at ¶ 7); and (5) Dusevic is 22 years old and has one minor child, R.D. who is 4 months old, employed as a remote insurance agent, and is unmarried (Id. at ¶ 8).  

Dusevic further declares that: (1) Dusevic has completed a previous transaction on March 3, 2023 through the Los Angeles County Court (Case No. 23STCP00137) transferring one lump sum payment of $60,000.00 due on April 6, 2026 to Petitioner, and from such settlement, Dusevic received $34,000.00 (Id. at ¶ 9); (2) Dusevic has completed a previous transaction on May 31, 2023 through the Los Angeles County Court (Case No. 23STCP01128) transferring one lump sum payment of $84,077.00 due on April 6, 2031 to Petitioner, and from such settlement, Dusevic received $30,000.00 (Id.); (3) Dusevic has not attempted any previous transactions involving Dusevic’s structured settlement payment that were denied, dismissed, or withdrawn prior to a decision on the merits, within the past five years (Id. at ¶ 10); (4) Dusevic is currently experiencing a financial hardship and, if approved, would use the money received from the proposed settlement for a down payment on a home (Id. at ¶ 11); (5) Dusevic understands the terms of the transfer agreement including the terms set forth in the disclosure statement (Id. at ¶ 13); (6) Dusevic waived the right to seek independent legal advice (Id. at ¶ 12; Petition at Exhibit E); and (7) Dusevic understands and does not wish to cancel the agreement (Id. at ¶ 14).

Petitioner provided a disclosure form that complies with California Insurance Code, Section 10136 (Petition at Exhibit B) and a transfer agreement that complies with California Insurance Code, Sections 10136 and 10138 (Petition at Exhibit A.)  The transfer will not contravene any applicable statute or known order of a Court or other governmental authority. 

A review of the Petition reveals that it includes the evidence necessary to make the findings required under California Insurance Code, Section 10139.5.

The Petition is therefore GRANTED.