Judge: Michelle C. Kim, Case: 24STCP02650, Date: 2024-10-23 Tentative Ruling
Case Number: 24STCP02650 Hearing Date: October 23, 2024 Dept: 78
Superior Court of California
County of Los Angeles
Department 78
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J.G. WENTWORTH ORIGINATIONS, LLC, Petitioner, vs. ANGELA JOHNSON, et al., Real Party-In- Interest/Transferor. | Case No.: | 24STCP02650 (R/T 24STCP01870) |
Hearing Date: | October 23, 2024 | |
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[TENTATIVE] ORDER DENYING WITHOUT PREJUDICE AMENDED PETITION FOR APPROVAL FOR TRANSFER OF PAYMENT RIGHTS | ||
I. BACKGROUND
This is a Petition for Approval for Transfer of Payment Rights. The First Amended Petition (the “Petition”) filed on September 20, 2024 states as follows.
Petitioner J.G. Wentworth Originators, LLC (“Petitioner”) brings this action on behalf of Angela Johnson (“Payee” or “Johnson”). On June 13, 2000, Johnson became entitled to certain structured settlement payments resulting from a personal injury claim. If the Purchase Agreement is approved, Johnson will transfer A) 120 monthly payments of $1,500.00 each, beginning on September 10, 2034 and ending on August 10, 2044, in exchange for Petitioner paying Johnson $60,765.86. Petitioner seeks an Order from this Court approving the transfer of payment rights pursuant to Insurance Code section 10134, et seq.
II. PROCEDURAL HISTORY
On September 20, 2024, Petitioner filed the First Amended Petition for Approval for Transfer of Payment Rights.
On September 30, 2024, Petitioner filed a Notice of Lodging Under Seal a Confidential Settlement Agreement and Release.
On September 30, 2024, Petitioner filed First Amended Notice of Hearing on Petition for Approval for Transfer of Payment Rights.
III. DISCUSSION
Petitioner seeks an Order approving the transfer of payment rights pursuant to Insurance Code section 10134, et seq.¿¿
Pursuant to Insurance Code section 10137(a):¿¿
“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.”¿¿
Insurance Code section 10139.5 provides the factors to be considered by the court in determining whether to approve the transfer of a structured settlement. The Court will address each factor in turn.
Whether transfer is in the best interest of the payee, taking into account the welfare and support of the payee's dependents.
Petitioner avers that Payee is 28 years old, single, with no minor children, which would be set forth in a declaration to be filed in this matter. To date, there has been no declaration from Payee providing any information to this Court to determine whether the transfer is in Payee’s best interest.
Insurance Code section 10139.5(a)(1) is not satisfied.
Whether 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.
Petitioner attaches a California Statement of Professional Representation signed by Payee, indicating that Petitioner advised Payee that she should obtain independent professional representation concerning this transaction, and that she does not wish to seek out such representation. (Amended Pet.; Exh. D.)
Insurance Code section 10139.5(a)(2) is satisfied.
Whether 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.
Petitioner has complied with the notification requirements and has attached a disclosure form that complies with Section 10136 and a transfer agreement that complies with sections 10136 and 10138. (Amended Pet. Exhs. A & B.)
Insurance Code section 10139.5(a)(3) is satisfied.
Whether the transfer does not contravene any applicable statute or the order of any court or other government authority.
The transfer generally complies with statutory requirements, and there is no evidence that it contravenes the order of any court or other government authority. However, given the missing information from Payee, the Court cannot determine whether this requirement is satisfied.
Insurance Code section 10139.5(a)(4) is not satisfied.
Whether the payee understands the terms of the transfer agreement, including the terms set forth in the disclosure statement required by Section 10136.
Payee signed the Transfer Agreement directly under a statement advising her of her right to cancel the agreement. However, there is no other information, such as an affidavit from Payee, demonstrating Payee’s understanding.
Insurance Code section 10139.5(a)(5) is not satisfied.
Whether the payee understands and does not wish to exercise the payee's right to cancel the transfer agreement.
For the same reasons as above, the Court is unable to make any express findings on this factor due to the lack of declaration from Payee that Petitioner averred would be filed, but has not to date.
Insurance Code section 10139.5(a)(6) is not satisfied.
Insurance Code section 10139.5(b) provides further factors for the Court’s consideration, under the totality of the circumstances, in determining whether the proposed transfer should be approved. The Court need not address this portion yet, considering the lack of accompanying declaration from Payee.
IV. CONCLUSION
Accordingly, the Petition is DENIED without prejudice.
Moving Party is ordered to give notice.
DATED: October 22, 2024
__________________________
Hon. Michelle C. Kim¿
Judge of the Superior Court
PLEASE TAKE NOTICE:
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