Judge: Peter A. Hernandez, Case: 25STCP00944, Date: 2025-04-29 Tentative Ruling
Case Number: 25STCP00944 Hearing Date: April 29, 2025 Dept: 34
J.G. Wentworth
Originations, LLC and Jamie Leyva Jr. (25STCP00944)
Petitioner J.G. Wentworth Originations, LLC’s Petition for Approval for
Transfer of Payment Rights is GRANTED.
Background
On
March 13, 2025, Petitioner J.G. Wentworth Originations, LLC (“Petitioner”)
filed this petition for approval for transfer of payment rights as to Payee Jamie Leyva Jr.
(“Payee”).
On
April 4, 2025, Petitioner filed a First Amended 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, considering the welfare and support of the payee's
dependents.
The transfer must be in the best interest of
the payee, considering 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, in 2019, Payee became
entitled to certain structured settlement payments arising in connection with a
personal injury claim, including 48 monthly payments of $3,370 each beginning
on February 1, 2030, and ending on January 1, 2034. (Petition, ¶¶ 3-4.) If
approved, Payee will receive a payment of $79,000. (Id., at p. 4.) The
“annuity issuer” who has issued an insurance contract used to fund the
structured settlement payments is American General Life Insurance Company. (Id.,
¶ 5.) The “structured settlement obligor” is America General Annuity Service
Corporation. (Id., ¶ 6.)
Payee is 38 years old with two minor children,
separated from their spouse, and with no court-ordered child support
obligations. (Leyva Decl., ¶ 8.) Payee has completed three previous transactions:
(1) on May 22, 2023, in Case No. 23STCP00531, transferring monthly payments of
$3,370 each due from May 1, 2023, to April 1, 2027, whereby Payee received $113,260;
(2) on January 29, 2024, in Case No. 23STCP04209, transferring 20 monthly
payments of $3,370 each from May 1, 2027 to December 1, 2028 whereby Payee
received $37,500; and (3) on May 29, 2024, in Case No. 24STCP01044,
transferring 13 monthly payments of $3,370 each from January 1, 2029 to January
1, 2030 whereby Payee received $19,500. (Id., ¶ 9.) Payee seeks to use
the money from this petition to pay for his credit card debt and to purchase a
travel trailer for his family. (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. (Leyva 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. (Leyva 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. (Leyva 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 considering
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.