Judge: Michael Shultz, Case: 25STCP00522, Date: 2025-03-27 Tentative Ruling
Case Number: 25STCP00522 Hearing Date: March 27, 2025 Dept: 40
25STCP00522
Petition of J.G. Wentworth Originations, LLC
Thursday,
March 27, 2025, at 8:30 a.m.
[TENTATIVE] ORDER GRANTING
Real party in interest, A.A., settled a prior personal injury action
that entitled AA to periodic structured payments: $50,000 on October 25, 2025,
and $60,000 on October 5, 2028, pursuant to an annuity issued by Metropolitan
Life Insurance Company. AA is transferring two of four pending payouts from the
annuity. (Ex. .pdf p. 32.) She is entitled to two more payments totaling
$152,500 in 2031 and 2033. (Id.)
A.A. agreed to transfer the rights to two future payments to Petitioner
in exchange for a purchase price of $85,500. The discounted present value of
the transferred payments is $97,802.22. (Ex. A, Contract.)
California Insurance Code section 10139.5 provides that a transfer of
structured settlement payment rights is not effective unless the transfer has
been approved in advance in a final court order based on the following express
findings by the court:
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(1) The transfer is in the best
interest of the payee, considering the welfare and support of the payee’s
dependents. |
Per the Declaration of AA AA is 29 years old and has two dependents, age 1 and age 8. She is
married and employed part-time. AA is experiencing financial hardship and
needs to pay off medical bills and credit card debt of $24,000. She declares
that the transfer is critical to achieving financial independence. A portion of the funds will be invested in her catering business for
which she has developed a comprehensive business plan. She will allocate funds to a 529 Plan for her children’s college
fund. |
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(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. |
Ex. A, .pdf p. 24, ¶1; A.A. declaration, ¶ 12. Payee has waived the
right to seek independent advice. |
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(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. |
Ex. B., .pdf p. 26. |
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(4) The transfer does not
contravene any applicable statute or the order of any court or other
government authority |
The transfer is made in compliance with Insurance Code § 10136, et
seq. |
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(5) The payee reasonably
understands the terms of the transfer agreement, including the terms set
forth in the disclosure statement required by Section 10136. |
AA Decl., ¶ 13 |
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(6) The payee understands and
does not wish to exercise the payee’s right to cancel the transfer agreement.
(Ins. Code, § 10139.5(a).) |
AA Decl., ¶ 13. |
The court determines whether the transfer is
reasonable and in the best interest of the transferor based on the “totality of
circumstances” including, but not limited to:
(1) the reasonable
preference and desire of the payee to complete the proposed transaction, considering
the payee’s age, mental capacity, legal knowledge, and apparent maturity level;
(2)
the stated purpose of the transfer;
(3) the payee’s
financial and economic situation;
(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; [there were none] and
(8) whether the payee and his or her dependents
are facing a hardship situation.” (Ins.
Code, § 10139.5(b).)
The
application meets the foregoing requirements under the Insurance Code.