Judge: Michelle C. Kim, Case: 24STCP03064, Date: 2024-11-05 Tentative Ruling
Case Number: 24STCP03064 Hearing Date: November 5, 2024 Dept: 78
Superior Court of California
County of Los Angeles
Department 78
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J.G. WENTWORTH ORIGINATIONS, LLC, Petitioner, vs. AARIC GEERDTS, Real Party-In- Interest/Transferor. | Case No.: | 24STCP03064 |
Hearing Date: | November 5, 2024 | |
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[TENTATIVE] ORDER GRANTING PETITION FOR APPROVAL FOR TRANSFER OF PAYMENT RIGHTS | ||
I. BACKGROUND
This is a Petition for Approval for Transfer of Payment Rights. The verified Petition (the “Petition”) filed on September 24, 2024 states as follows.
Petitioner J.G. Wentworth Originators, LLC (“Petitioner”) brings this action on behalf of Aaric Geerdts (“Payee” or “Geerdts”). In 2007, Geerdts became entitled to certain structured settlement payments resulting from a personal injury claim. If the Purchase Agreement is approved, Geerdts will transfer A) 1 payment of $15,000.00 on July 19, 2025 and B) 1 payment of $25,000.00 on July 19, 2027, in exchange for Petitioner paying Geerdts $26,000.00. Petitioner seeks an Order from this Court approving the transfer of payment rights pursuant to Insurance Code section 10134, et seq.
II. 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.
Payee declares that he is 24 years old, not married, unemployed, and with no minor children or child support obligations. (Geerdts Decl. ¶8.) Payee is currently experiencing financial hardship and that he seeks to use the money received from the proposed settlement to pay $1,500 in student debt, purchase a used vehicle for around $12,000 to look for work, and to expunge the DUI on his record for the estimated cost of $2,500. (Id. ¶ 11.)
The Court is satisfied with Payee’s declaration. Insurance Code section 10139.5(a)(1) is 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. (Pet.; Exh. E.)
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. (Suppl. Amended Exh. A & Pet Exh. 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.
Payee declares that there is no Conservator or Guardian currently in place, who is receiving the annuity payments on his behalf, the annuity policy is not irrevocable, no Trust Agreement involved, and no other interested that are entitled to notice of this transfer of annuity payments. (Suppl. Exh. C, Geerdts Decl. ¶¶ 5-8.)
The transfer generally complies with statutory requirements, and there is no evidence that it contravenes the order of any court or other government authority.
Insurance Code section 10139.5(a)(4) is 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. Payee declares he understands the terms of the transfer agreement. (Geerdts Decl. ¶ 13.)
Insurance Code section 10139.5(a)(5) is satisfied.
Whether the payee understands and does not wish to exercise the payee's right to cancel the transfer agreement.
Payee declares he does not wish to exercise his right to cancel the agreement. (Geerdts Decl. ¶ 13.)
Insurance Code section 10139.5(a)(6) is satisfied.
Insurance Code section 10139.5 subd. (b) and (c) provide further factors for the Court’s consideration, under the totality of the circumstances, in determining whether the proposed transfer should be approved. The Court finds the transfer to be fair and reasonable after taking into account Payee’s declaration regarding his financial situation, age, stated purpose, and the terms of the transaction.
III. CONCLUSION
Accordingly, the Petition is GRANTED.
Moving Party is ordered to give notice.
DATED: November 4, 2024
__________________________
Hon. Michelle C. Kim¿
Judge of the Superior Court
PLEASE TAKE NOTICE:
• Parties are encouraged to meet and confer after reading this tentative ruling to see if they can reach an agreement.
• If a party intends to submit on this tentative ruling, the party must send an email to the court at SMCDEPT78@lacourt.org with the Subject line “SUBMIT” followed by the case number. The body of the email must include the hearing date and time, counsel’s contact information, and the identity of the party submitting.
• Unless all parties submit by email to this tentative ruling, the parties should arrange to appear remotely (encouraged) or in person for oral argument. You should assume that others may appear at the hearing to argue.
• If the parties neither submit nor appear at hearing, the Court may take the motion off calendar or adopt the tentative ruling as the order of the Court. After the Court has issued a tentative ruling, the Court may prohibit the withdrawal of the subject motion without leave.