Judge: Peter A. Hernandez, Case: 25STCP00589, Date: 2025-03-27 Tentative Ruling

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Case Number: 25STCP00589    Hearing Date: March 27, 2025    Dept: 34

Petitioner J.G. Wentworth Originations, LLC’s Petition for Approval for Transfer of Payment Rights is GRANTED.

Background

            On February 14, 2025, Petitioner J.G. Wentworth Originations, LLC (“Petitioner”) filed this Petition for Approval for Transfer of Payment Rights as to Payee Melvin Reed III (“Payee”).

            On March 12, 2025, Petitioner filed a Notice of Errata to the Petition.

Legal Standard

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.

Discussion

            Petitioner seeks an order approving the transfer of payment rights pursuant to Insurance Code section 10134(c)(1).

1.     Whether transfer is in the best interest of the payee, taking into account the welfare and support of the payee's dependents. 

The transfer must be in the best interest of the payee, taking into account the welfare and support of the payee’s dependents.¿(Ins. Code, § 10139.5, subd. (a)(1).) When determining whether the transfer is fair, reasonable, and in the payee’s best interests, the court must consider the totality of the circumstances, including but not limited, to those circumstances listed in Insurance Code section 10139.5, subdivision (b). 

The Petition provides that on December 17, 2010, Payee, by and through his Guardian ad Litem, Evette Monterio, became entitled to certain structured settlement payments resulting from a claim for damages arising in connection with a wrongful death claim, including a payment of $49,435.00 on October 2, 2027. (Petition, ¶¶ 3-4.) If approved, Payee will receive a payment of $30,000.00. (Id., at p. 4.) The “annuity issuer” who has issued an insurance contract used to fund the structured settlement payments is Prudential Insurance Company of America. (Id., ¶ 5.) The “structured settlement obligor” is Prudential Assigned Settlement Services Corp. (Id., ¶ 6.)

Payee is 18 years old, not married, unemployed, and with no minor children or any court-ordered child support obligations. (Reed Decl., ¶ 8.) Payee has completed a previous transaction on February 7, 2025 in Case No. 24STCP03856, transferring a payment of $49,435.00 due on October 2, 2025 and a payment of 49,435.00 due on October 2, 2026 to Petitioner whereby Payee received $73,258.61. (Id., ¶ 9.) Payee seeks to use the money from this Petition to cover his medical expenses, pay for private school tuition, hire a tutor, and purchase a vehicle while saving the remainder. (Id., ¶ 11.)

With the information provided, the court finds Insurance Code section 10139.5(a)(1) satisfied. 

2.     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 he should obtain independent professional representation concerning this transaction, and that he does not wish to seek out such representation. (Petition, Exh. E.) Payee declares he did not receive independent legal or financial advice regarding the proposed transaction and refers to his waiver attached as Exhibit E to the Petition. (Reed Decl., ¶ 12.)

Insurance Code section 10139.5(a)(2) is satisfied. 

3.     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. (Petition, Exh. B.)

Insurance Code section 10139.5(a)(3) is satisfied. 

4.     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. 

Insurance Code section 10139.5(a)(4) is satisfied.

5.     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 him of his right to cancel the agreement. Payee declares he understands the terms of the transfer agreement. (Reed Decl., ¶ 13.) 

Insurance Code section 10139.5(a)(5) is satisfied. 

6.     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. (Reed 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.¿Accordingly, the Petition is granted. 

Conclusion

Petitioner J.G. Wentworth Originations, LLC’s Petition for Approval for Transfer of Payment Rights is GRANTED.