Judge: Malcolm Mackey, Case: 23STCP00082, Date: 2023-02-27 Tentative Ruling

Case Number: 23STCP00082    Hearing Date: February 27, 2023    Dept: 55

IN RE Petition of: 

J.G. WENTWORTH ORIGINATIONS, LLC, and JONATHAN LARICCIA.  23STCP00082

Hearing Date:  2/27/23,  Dept. 55.

#3:   VERIFIED PETITION FOR APPROVAL FOR TRANSFER OF PAYMENT RIGHTS.

Notice:  Okay

No Opposition

MP:  Petitioner J.G. WENTWORTH ORIGINATIONS, LLC.

RP:  

Summary

On 1/11/23, Petitioner filed a “VERIFIED PETITION FOR APPROVAL FOR TRANSFER OF PAYMENT RIGHTS.”

MP Positions

Petitioner requests an order approving a transfer of settlement payment rights, on grounds including the following:

·         The underlying settlement in favor of the Transferor provides for periodic structured payments including, but not limited to, A) 1 payment of $19,140.92 on September 5, 2024 B) 1 payment of $19,140.92 on September 5, 2025.

·         Payee is 21 years old, single with no minor children, as set forth in the declaration. Payee is currently unemployed. Payee feels it is in their best interest to enter into this transaction with the Petitioner and sell a portion of their underlying annuity payments so he can have the financial means to find a place to live.

·         If approved, Payee will receive $23,762.12 from this transaction.

Tentative Ruling

The petition is granted.

The Court will sign and file a lodged order from petitioner that is in statutory compliance.

The Court finds that the papers comply with the procedural requirements.

The Court further finds that the proposed transfer is in the best interest of the payee, considering that the payee has no dependents, and needs funds to afford a residential location.

“The court-approval process requires the factoring company to file a petition in the county in which the transferor resides for approval of the transfer, attaching copies of the petition, the transfer agreement, the disclosure form, the annuity contract, any qualified assignment agreement and the structured settlement agreement, a list of the names and ages of the transferor's dependents, notice of the court hearing date, and notice of a right to respond.”  321 Henderson Receivables Origination LLC v. Sioteco  (2009) 173 Cal.App.4th 1059, 1066 (citing Ins.C. §10139.5(c)).

“The California act…governing transfers of structured settlement payment rights defines a ‘ “[s]tructured settlement agreement” [as] an arrangement for periodic payment of damages established by settlement or judgment in resolution of a tort claim in which the payment of the judgment or award is paid in whole, or in part, in periodic tax-free payments rather than a lump-sum payment.’ ”  Matthews v. Liberty Assignment Corp. (2016) 247 Cal. App. 4th 71, 78.

“Annuity issuers and structured settlement obligors are defined as ‘interested parties’ under the SSPA (§ 10134, subd. (g)), and as such, are entitled to notice of petitions to authorize transfer of payments under a structured settlement agreement.”  RSL Funding, LLC v. Alford (2015) 239 Cal. App. 4th 741, 745.

Procedurally, the following elements are required to be served and filed not less than 20 days prior to the scheduled hearing on any application for approval of a transfer of structured settlement payment rights:

(A) A copy of the transferee's application.

(B) A copy of the transfer agreement.

(C) A listing of each of the payee's dependents, together with each

dependent's age.

(D) A copy of the disclosure required in subdivision (b) of Section 10136.

(E) A copy of the annuity contract.

(F) A copy of any qualified assignment agreement.

(G) A copy of the underlying structured settlement agreement.

(H) Notification that any interested party is entitled to support, oppose, or

otherwise respond to the transferee's application, either in person or by

counsel, by submitting written comments to the court or by participating in the hearing.

(I) 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 application 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.

Ins. C. §10139.5(c)(2).

Additionally, 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 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 reasonably understands and does not wish to exercise the payee's right to cancel the transfer agreement.

Ins. Code § 10139.5(a).  See also  321 Henderson Receivables Origination LLC v. Sioteco  (2009) 173 Cal.App.4th 1059, 1066 (citing Ins.C. §10139.5(a)).

Also, judges shall retain continuing jurisdiction to interpret and monitor the implementation of the transfer agreement as justice requires.  Ins. C. §10139.5(f).

Further, at the time of filing such a petition, the transferee shall file a copy of the petition with the California Attorney General.  Ins C. §10139.

In addition, all court costs and filing fees shall be paid by the transferee.  Ins. C. §10139.5(d). 

Finally, no timely and meritorious objection has been made that a transfer would violate an enforceable anti-assignment provision.

*IF THE PARTIES WOULD LIKE TO SUBMIT ON THE COURT’S TENTATIVE RULING, PLEASE CALL  DEPARTMENT 55 213-633-0655