Judge: Lynne M. Hobbs, Case: 24STCP03571, Date: 2024-12-17 Tentative Ruling

Case Number: 24STCP03571    Hearing Date: December 17, 2024    Dept: 61

IN THE MATTER OF: J.G. WENTWORTH ORIGINATIONS, LLC

TENTATIVE

J.G. Wentworth Originations, LLC Petition for Approval of Payment Rights from Jacob Elijah Husser is GRANTED.

Petitioner to give notice.

DISCUSSION

Insurance Code section 10136 states:

(a) No direct or indirect transfer of structured settlement payment rights by a payee to which this article applies shall be effective, and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to a transferee, unless all of the provisions of this section are satisfied.

(b) 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 substantially the following form . . . .

In order for a court to approve such transfer, certain statutory provisions as set forth in Section 10139.5 must be met. These include findings of the following:

(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, in writing, the opportunity to receive the advice.

(3) The transferee has complied with the notification requirements pursuant to paragraph (2) of subdivision (f), 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 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.

A court must also find that the transfer is “fair and reasonable” in light of the payee’s best interest and their dependents. (Ins. Code § 10137.)

Payee Jacob Elijah Husser (Husser) submits a declaration in support of this petition to transfer payment rights to Petitioner J.G. Wentworth Originations LLC (Petitioner). Husser is 28 years old, unmarried with one minor child who is two years old, living with him. (Husser Decl. ¶ 8.) By the proposed transfer of one $20,000 payment due in May 2031, Payee is to receive one lump payment of $5,000.00. (Husser Decl. ¶ 5.) Husser states that the payments were not intended to pay for future medical care or necessary living expenses. (Husser Decl. ¶¶ 6–7.)

Husser states he is currently experiencing financial hardship and will use the fund received to pay off credit card debt and a personal loan. (Husser Decl. ¶ 11.) The funds will also allow Husser to move into a larger two-bedroom apartment, as he and his daughter have outgrown their current apartment. (Husser Decl. ¶ 11.) Husser will additionally pay down a car maintenance expense, and start a college fund for his daughter. (Husser Decl. ¶ 11.)

Husser identifies four prior structured settlement transfers approved for him by courts in September 2014, November 2016, January 2021, and October 2024. (Husser Decl. ¶ 9.) Two prior attempts to approve structured settlement transfers were denied in June 2016 in Riverside County and June 2018 in Orange County. (Husser Decl. ¶ 10.)

Husser received and signed a disclosure form in compliance with Insurance Code § 10136 and states that they have read and understood the transfer agreement and do not wish to cancel it. (Husser Decl. ¶ 13; Petition Exh. A.) The disclosure form states that the discounted present value of the $20,000 payment in 2031 is $15,079.96, and if Husser instead obtained a loan in the amount of the lump sum and paid back the loan with the installment to be transferred, the interest on the loan would be 23.54% per year. (Petition Exh. A.)

Based on the above, the transfer is fair and reasonable in light of Husser’s best interest. He has been advised to seek independent counsel and has waived that right. (Husser Decl. ¶ 12; Petition Exh. E.) The required disclosure form has been provided, the transfer does not contravene any

statute or court order, and the payee understands the terms of the transfer. Husser does not wish to cancel the transfer. (Husser Decl. ¶ 13.) The transfer is fair, reasonable, and in his best interest.

The petition is GRANTED.