Judge: Robert B. Broadbelt, Case: 23STCP00137, Date: 2023-02-17 Tentative Ruling

Case Number: 23STCP00137    Hearing Date: February 17, 2023    Dept: 53

Superior Court of California

County of Los Angeles – Central District

Department 53

MOVING PARTY:                Petitioner J.G. Wentworth Originations, LLC

RESPONDING PARTY:        Unopposed

Petition for Approval for Transfer of Payment Rights

The court considered the First Amended Verified Petition.  No response to the Petition was filed.  

BACKGROUND

Claimant Vjeko Dusevic (“Dusevic”) settled a wrongful death action in or about 2009.  (First Amended Petition filed January 27, 2023 (“Pet.”) ¶ 3.)  The settlement provides for periodic structured payments.  (Pet., ¶ 4.)  Dusevic has agreed to sell, and petitioner J.G. Wentworth Originations, LLC (“Petitioner”) has agreed to purchase, a lump sum payment of $60,000, to be paid on April 6, 2026.  (Pet., ¶ 7; Pet., Ex. A, California Purchase Contract, ¶¶ 2, 10.)  Dusevic will receive $34,000 in exchange for the transfer of the payment described above.  (Pet., Ex. A, California Purchase Contract, ¶ 10.)

Petitioner now seeks court approval of the agreement pursuant to Insurance Code section 10134 et seq.

LEGAL STANDARD

“A direct or indirect transfer of structured settlement payment rights is not effective and a structured settlement obligor or annuity issuer is not required to make any payment directly or indirectly to any transferee of structured settlement payment rights” unless the court approves the transfer in advance.  (Ins. Code, § 10139.5, subd. (a).)  To approve the settlement, the court must make express written findings that: 

(1)   The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents. 

(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, in writing, the opportunity to receive the advice. 

(3)   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. 

(4)   The transfer does not contravene any applicable statute or the order of any court or other government authority. 

(5)   The payee understands the terms of the transfer agreement, including the terms set forth in the disclosure statement required by Section 10136. 

(6)   The payee understands and does not wish to exercise the payee’s right to cancel the transfer agreement. 

(Ins. Code, § 10139.5, subd. (a)(1)-(6).) 

“When determining whether the proposed transfer should be approved, including whether the transfer is fair, reasonable, and in the payee’s best interest, taking into account the welfare and support of the payee’s dependents, the court shall consider the totality of the circumstances,” including the 15 circumstances set forth in Insurance Code § 10139.5, subdivision (b)(1)-(15). 

DISCUSSION

Based on the petition and the evidence presented in support of it, the court finds and orders as follows.

First, the court finds that the transfer is in the best interest of the payee, Dusevic, taking into account the welfare and support of Dusevic’s dependents.  (Ins. Code, § 10139.5, subd. (a)(1).)  Dusevic is 21 years old, unemployed, and experiencing financial hardship.  (Amended Dusevic Decl. filed January 27, 2023 (“Dusevic Decl.”), ¶¶ 1, 8, 11.)  If approved, Dusevic will use the money received to move into a bigger apartment and purchase necessary items for Dusevic’s expected child.  (Dusevic Decl., ¶ 11.)  In light of these facts, the court finds that the transfer is in Dusevic’s best interests.

Second, the court finds that Dusevic has been advised in writing by Petitioner to seek independent professional advice regarding the transfer and has knowingly waived, in writing, the opportunity to receive the advice.  (Ins. Code, § 10139.5, subd. (a)(2).)  Petitioner has submitted a copy of a form entitled “California Statement of Professional Representation,” which (1) states that the signee (i) has been advised by Petitioner that independent professional representation should be obtained concerning the legal implications of the transaction, and (ii) understands the purchase agreement and the effects of the transaction and does not wish to seek out such independent professional representation, and (2) was signed by Dusevic on January 4, 2023.  (Pet., Ex. E; Dusevic Decl., ¶ 12.)

Third, the court finds that Petitioner has complied with the notification requirements pursuant to paragraph 2 of subdivision (f), has provided Dusevic with a disclosure form that complies with Section 10136, and the transfer agreement complies with Sections 10136 and 10138.  (Ins. Code, § 10139.5, subd. (a)(3).)

Insurance Code section 10139.5, subdivision (f)(2) requires Petitioner to file and serve, not less than 20 days before the hearing on a petition for approval of a transfer of payment rights, a notice of the proposed transfer and the petition for its authorization, a copy of the proposed transfer agreement, a listing of each of the payee’s dependents, disclosures as required by section 10136, and, if available, copies of the annuity contract, any qualified assignment agreement, and the underlying structured settlement agreement. 

On January 19, 2023, Petitioner filed a Proof of Service establishing that Petitioner served Dusevic, the annuity issuer, and the annuity obligor with the notice of hearing on the petition, the original petition, the original declaration of Dusevic, the notice of case assignment, and the information packet.  On January 27, 2023, Petitioner filed a second Proof of Service establishing that Dusevic, the annuity issuer, and the annuity obligor was served with the First Amended Petition for Approval for Transfer of Payment Rights and the First Amended Declaration in Support of Petition for Approval for Transfer of Payment Rights.  The First Amended Petition attaches copies of the California Purchase Contract, disclosure statements, an affidavit signed by Dusevic regarding his entitlement to annuity payments, and the California Statement of Professional Representation.  The court therefore finds that Petitioner has substantially complied with the notification requirements.

Section 10136 requires that the transfer agreement include certain information and have certain qualities, including that it be written in 12-point type, state it will not be effective until a court enters a final order approving it and that payment can be delayed, and set forth certain information, including the net amount to be paid to the payee.  (Ins. Code, § 10136, subd. (c).)  Section 10138 includes additional requirements, including that a transfer agreement cannot waive the seller/payee’s right to sue, require the seller/payee to indemnify the buyer, or require the seller/payee to pay the buyer’s attorneys’ fees and costs.   (Ins. Code, § 10138, subd. (a).)    

Petitioner has submitted signed copies of (1) California Disclosure Statement, (2) Massachusetts Disclosure Statement, and (3) Michigan Disclosure Statement.  (Pet., Ex. B.)  The court finds that the written disclosure statements substantially comply with Section 10136.  The court further finds that the purchase contract complies with the statutory requirements.  (Pet., Ex. A, California Purchase Contract.)

Fourth, the court finds that the transfer does not contravene any applicable statute or the order of any court or other government authority.  (Ins. Code, § 10139.5, subd. (a)(4).)

Fifth, the court finds that Dusevic understands the terms of the transfer agreement, including the terms set forth in the disclosure statement required by Section 10136.  (Ins. Code, § 10139.5, subd. (a)(5); Dusevic Decl., ¶ 13.)

Sixth, the court finds that Dusevic understands and does not wish to exercise Dusevic’s right to cancel the transfer agreement.  (Ins. Code, § 10139.5, subd. (a)(6); Dusevic Decl., ¶ 14.)

Based on the findings set forth above, and after considering the circumstances set forth in Insurance Code section 10139.5, subdivision (b)(1)-(15), and Dusevic’s supporting amended declaration, the court determines that the proposed transfer of the structured settlement payment right should be approved and that the transfer is fair, reasonable, and in the payee’s best interest.

ORDER

The court grants petitioner J.G. Wentworth Originations, LLC’s First Amended Verified Petition for Approval for Transfer of Payment Rights.

The court orders that the transfer of the structured settlement payment right set forth in the California Purchase Contract, filed as “Exhibit A” to the “1st Amended Verified Petition for Approval for Transfer of Payment Rights,” on January 27, 2023, is approved.

The court orders petitioner J.G. Wentworth Originations, LLC to give notice of this ruling.

IT IS SO ORDERED.

DATED:  February 17, 2023

_____________________________

Robert B. Broadbelt III

Judge of the Superior Court