Judge: Teresa A. Beaudet, Case: 22STCP02940, Date: 2022-10-06 Tentative Ruling

Case Number: 22STCP02940    Hearing Date: October 6, 2022    Dept: 50

Superior Court of California

County of Los Angeles

Department 50

Background

Petitioner J.G. Wentworth Originations, LLC (“Petitioner”) requests that the Court approve the transfer of structured settlement payment rights by and between Sean Daniels (“Payee”) and Petitioner pursuant to Insurance Code §§ 10134, et seq.

Discussion

Under the transfer agreement entered into on August 15, 2022, Payee agreed to transfer 180 monthly payments of $539.15 each, beginning on October 29, 2022, and ending on September 29, 2037; in exchange for a purchase price of $39,500.00. (Amended Petition, Ex. A.) The effective equivalent interest rate is 14.99% per year. (Ibid.)

Under Insurance Code section 10136(b), ten or more days before the payee executes a transfer agreement, the transferee shall provide the payee with a separate written disclosure statement, accurately completed with the information that applies to the transfer agreement in at least 12-point type. Petitioner complied. (Amended Petition, Ex. B.) The disclosure complies with Insurance Code section 10136(b) by stating all the information and other disclosures required by this section. The transfer agreement also complies with Insurance Code section 10136(c) by containing the required information and further disclosures. (Amended Petition, Ex. A.)

Under Insurance Code section 10137, 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 Insurance Code section 10139.5.

Under Insurance Code section 10139.5, factors to consider include (1) the reasonable preference and desire of the payee to complete the proposed transaction, taking into account the payee’s age, mental capacity, legal knowledge, and apparent maturity level; (2) the stated purpose of the transfer; (3) the payee’s financial and economic situation; and (4) the terms of the transaction, including whether the payee is transferring monthly or lump sum payments or all or a portion of his or her future payments.

Payee is over the age of 18. (Declaration of Payee in Support of Petitioner’s Petition for Approval for Transfer of Payment Rights (“Daniels Decl.”) ¶ 1.) Payee is not married and has no minor children and no child support obligations. (Daniels Decl., ¶ 8.) Payee is not working but is in school for acting. (Ibid.) When the original settlement was completed, the future period payment(s) that are the subject of the proposed transfer were not intended to pay for the future medical care and treatment relating to the incident that was the subject of the settlement, and were not intended to provide for necessary living expenses. (Daniels Decl., ¶¶ 6, 7.) Payee is currently experiencing a financial hardship, and if approved, Payee will use the money received from the proposed settlement to retain an attorney and pay attorney fees, as he is being evicted and needs legal representation. (Daniels Decl., ¶ 11.) Payee also indicates that he is partially disabled and will be paying for continued therapy; and that any remainder will go towards rent for the next year, moving expenses, furniture, utility bills, and basic monthly expenses. (Ibid.)

The Court finds that the transaction is fair and reasonable and in the best interest of Payee.  

Insurance Code section 10138 prohibits certain provisions. The transfer agreement in this proceeding does not contain any of the prohibited provisions. The transfer agreement also complies with provisions set forth in Insurance Code § 10139.3.

Under Insurance Code section 10139.5(a)(2), the petitioner is required to advise the payee in writing to seek independent professional advice regarding the transfer and payee must either obtain such advice or waive, in writing, the opportunity to receive such advice. Petitioner indicates that Payee has been advised in writing to seek independent professional representation regarding the transfer and has waived the opportunity to seek and receive such representation. (Amended Petition, Ex. E.)  

Insurance Code section 10139.5(f)(2) requires that a notice of the proposed transfer and the application for its authorization be filed with the court and served on all interested parties not less than 20 days prior to the scheduled hearing on any petition for approval of a transfer of structured settlement payment rights. The notice includes the required elements. The transfer agreement complies with the other required elements in Insurance Code section 10139.5.

Conclusion

Based on the foregoing, the Petition is granted. Petitioner shall file, directly in Dept. 50, within five days of this hearing, a proposed order for signature.

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Petitioner is ordered to provide notice of this order.

DATED:  October 6, 2022                             ________________________________

Hon. Teresa A. Beaudet

Judge, Los Angeles Superior Court