Judge Kerry Bensinger, Case Number: 24STCP03736, Date: 2025-01-16 Tentative Ruling

Payee, Dorita Newman, by and through her guardian ad litem, Juanita Newman, received a structured settlement in 1990 arising out of a personal injury claim. Payee is now 59 years old and wishes to use the proceeds from the settlement to pay rent, credit card debt, and car repairs.

Petitioner, J.G. Wentworth Originations, LLC, now seeks approval of the transfer of certain structured settlement payment rights by Payee to Petitioner and/or its assigns.

This petition is governed by Insurance Code sections 10134–10139.5.[1] (See also 321 Henderson Receivables Origination LLC v. Sioteco (2009) 173 Cal.App.4th 1059, 1066.) Under 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, will not contravene other applicable law, and the court has reviewed and approved the transfer as provided in Section 10139.5.

Pursuant to Section 10139.5, subdivision (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 that advice in writing.

(3) The Petitioner has complied with the notification requirements pursuant to Section 10139.5, subdivision (f)(2), and transferee has provided the payee with a disclosure form that complies with Section 10136 and the transfer agreement complies with sections 10136 and10138.

(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 reasonably 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. (§ 10139.5, subd. (a).)

When determining whether the proposed transfer should be approved, including whether the transfer is fair, reasonable, and in the payee’s best interest, the court shall consider the totality of the circumstances, including, but not limited to:

(1) the reasonable preference and desire of the payee to complete the proposed transaction, taking into account the payee’s age, mental capacity, legal knowledge, and apparent maturity level;

(4) the terms of the transaction, including whether the payee is transferring monthly or lump sum payments or all or a portion of his or her future payments;

(5) whether the future periodic payments were intended to pay for future medical care of the payee related to the incident that was the subject of the settlement;

(6) whether the payee has other means of income or support sufficient to meet the payee’s future financial obligations for support of payee’s dependents, such as child support;

(7) whether there were previous transactions involving payee’s structured settlement payments; and

(8) whether the payee and his or her dependents are facing a hardship situation.

Procedurally, Section 10136, subdivision (b) provides that 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 at least 12-point type. The court-approval process requires the transferee to file a petition in the county in which the transferor resides for approval of the transfer. (§ 10139.5, subd. (f)(1).)

Further, at the time of filing such a petition, the transferee shall file a copy of the petition with the California Attorney General. (§ 10139.) Lastly, the court shall retain continuing

jurisdiction to interpret and monitor the implementation of the transfer agreement as justice

Section 10139.5 provides that a direct or indirect transfer of structured settlement

payment rights is not effective unless the transfer has been approved in a final court order based

on certain express written findings by the court. (§ 10139.5, subd. (a)(1)-(6).) Upon review of the Petition, the court hereby makes the following findings:

a. That the transfer is in the best interest of the Payee as contemplated under Section 10139.5, subd. (a)(1). (Newman Decl., ¶ 11.)

b. That under Section 10139.5, subd. (a)(2), Payee has been advised in writing by Petitioner to

seek independent professional advice regarding the transfer and has either received that advice or

knowingly waived that advice in writing. (Newman Decl., ¶ 12; Amended Petition, Exh. E.)

c. That under Section 10139.5, subd. (a)(3), Petitioner has provided Payee with a disclosure form

that complies with Section 10136 and the transfer agreement complies with Section 10136 and

d. That under Section 10139.5, subd. (a)(4), the transfer does not contravene any applicable

statute or the order of any court or any other government authority. (Petition, generally.)

Here, Payee states that she is 59 years old, unmarried, without children, and self-employed as a freelance makeup artist. (Newman Decl., ¶ 8.) She further states that she is experiencing financial hardship. Approval of this Petition will allow her to pay past due rent of $1,700, credit card debt totaling $1,500, with the remainder of the funds going towards car repairs. (Newman Decl., ¶ 11.) Payee has initiated at least six prior transactions involving her structured settlement payments. (Id., ¶ 9.)

Petitioner complies with the venue requirement under Section 10139.5, subdivision (c)(1), as Payee resides in the County of Los Angeles. (Newman Decl., ¶ 1.)

The requirements of Section 10139.5, subdivision (f)(2) and Petitioner’s compliance therewith are listed below:

(A) A copy of the transferee’s current and any prior petitions. (Amended Petition, Section VI; Newman Decl., ¶ 9.)

(D) A copy of the disclosure required in subdivision (b) of section 10136. (Amended Petition, Exh. B.)

(H) If a copy of a document described in subparagraph (E), (F), or (G) is unavailable or cannot

be located, then the transferee is not required to attach a copy of that document to the petition or

notice of the proposed transfer if the transferee satisfies the court that reasonable efforts to locate and secure a copy of the document have been made, including making inquiry with the payee. If the documents are available, but contain a confidentiality or nondisclosure provision, then the transferee shall summarize in the petition the payments due and owing to the payee, and, if requested by the court, shall provide copies of the documents to the court at a scheduled hearing. (Not applicable.)

(I) Proof of service showing compliance with the notification requirements of this section. (Filed

(J) Notification that any interested party is entitled to support, oppose, or otherwise respond to

the transferee's petition, either in person or by counsel, by submitting written comments to the

(K) Notification of the time and place of the hearing and notification of the manner in which and

the time by which written responses to the petition must be filed, which may not be less than 15

days after service of the transferee’s notice, in order to be considered by the court. (See Notice of

Kerry Bensinger

Judge of the Superior Court

[1] All statutory references hereinafter are to the Insurance Code unless otherwise indicated.