Judge: Joseph Lipner, Case: 24STCP00478, Date: 2024-03-19 Tentative Ruling

Case Number: 24STCP00478    Hearing Date: April 8, 2024    Dept: 72

SUPERIOR COURT OF CALIFORNIA

COUNTY OF LOS ANGELES

DEPARTMENT 72

TENTATIVE RULING

The Court issued an order to show cause hearing on whether to impose sanctions against Petitioner J.G. Wentworth Originations, LLC (“J.G. Wentworth”) and attorney James Felton under CCP sections 128.5 and/or 128.7.  The Court has considered the declaration filed by Attorney Felton in response to the Court’s order to show cause.

The Court imposes sanctions against Attorney James Felton in the amount of $500.  Attorney Felton shall pay $500 to the clerk of this Court within 30 days.

The Court also separately imposes sanctions against J.G. Wentworth in the amount of $500.  J.G. Wentworth shall pay $500 to the clerk of this Court within 30 days.

On March 5, 2024, J.G. Wentworth filed an ex parte application seeking to advance the hearing on its petition for approval of transfer of payment rights, then scheduled for April 4, 2024.  The ex parte application was supported by a declaration under penalty of perjury from Attorney Felton.  The declaration stated, “The facts recited in this declaration are known to me of my own personal knowledge.”  (Felton Decl. paragraph 1.)  The declaration stated, “The Respondent requested that we seek to advance the hearing so that they will . . . have the receipt of the funds at an earlier time.”  (Felton Decl. paragraph 3.

These statements were not true.  In fact, the Respondent—i.e., the prospective transferor to J.G. Wentworth of the right to receive funds—had asked J.G. Wentworth to cancel his agreement to transfer the funds.  Respondent never asked to advance the date of the hearing as stated in Attorney Felton’s declaration.  J.G. Wentworth was the party that wished to advance the hearing.  The ex parte appears to have been an attempt by J.G. Wentworth to gain priority over a rival organization seeking to purchase the Respondent’s right to funds. 

Despite the difficulty it posed for the Court’s calendar, the Court granted the ex parte based on the untrue statement that Respondent had requested the advancement, which was accompanied by a statement that “The Respondent is experiencing financial hardship and is in desperate need of the funding as set forth in the Petition filed on February 14, 2024.”  (Felton Decl. paragraph 4.)  Thus, the Court relied on an untrue statement in granting the relief requested and did so at some burden to the Court and the interests of judicial economy. 

It goes without saying that an attorney must make sure his statements to a Court are true, not false.  This is especially so when the statements are made under penalty of perjury.  Attorney Felton violated this basic obligation.

A party also has an obligation to seek relief from a Court in truthful and honest ways.  J.G. Wentworth violated this basic obligation.

Accordingly, the Court imposes sanctions under CCP section 128.7 against Attorney Felton in the amount of $500, and separately against J.G. Wentworth in the amount of an additional $500.