Judge Theresa M. Traber, Case Number: 25STCP00775, Date: 2025-03-26 Tentative Ruling

Judge: Theresa M. Traber, Case: 25STCP00775, Date: 2025-03-26 Tentative Ruling

Case Number: 25STCP00775 Hearing Date: March 26, 2025 Dept: 47

Tentative Ruling

Judge Theresa M. Traber, Department 47

HEARING DATE: March 26, 2025 TRIAL DATE: NOT SET

CASE: In Re Petition of J.G. Wentworth Originations, LLC (Payee: Priscilla Serrano)

CASE NO.: 25STCP00775

MOTION FOR ORDER APPROVING TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS

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

RESPONDING PARTY(S): No response on eCourt as of March 21, 2025

CASE HISTORY:

· 02/27/25: Petition for approval of transfer of structured settlement payment rights filed.

· 03/10/25: Amended petition filed.

STATEMENT OF MATERIAL FACTS AND/OR PROCEEDINGS:

Petitioner seeks court approval of a proposed transfer of structured settlement payments.

TENTATIVE RULING:

Petitioner seeks court approval of a proposed transfer of structured settlement payments.

A direct or indirect transfer of structured settlement payment rights is not effective unless the transfer has been approved by a court order finding:

(1) The transfer is in the best interest of the payee, considering 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(a).)

As a result of a personal injury settlement entered into when as a minor, Payee Priscilla Serrano became entitled to certain structured settlement payments. (Amended Petition, Exh. C.)

Priscilla., as Payee, and Petitioner J.G. Wentworth Originations, LLC, as Assignee, have reached a Structured Settlement Payments Purchase Agreement, under which Payee is to sell future payments totaling $95,843.64 in exchange for a purchase price of $23,000.00. (Amended Petition Exh. A; B.)

The discounted present value of the amount being sold is $58,914.88, calculated by applying the 5.40% discount rate used by the Internal Revenue Service to value annuities in probate proceedings. The purchase price was calculated using a discount rate of 18.71%. If Payee did not sell the right to receive structured settlement payments but instead borrowed the net amount of $23,000.00 and paid that loan back in installments with each of the payments she is now selling, the equivalent interest rate would be 18.71%. (Ibid.)

All this information has been properly disclosed to Payee by way of the disclosure form in compliance with Insurance Code § 10136, as required by § 10139.5(a)(3). (Amended Petition, Exh. B.) Payee was advised in writing to seek independent professional advice, both legal and financial. (Ibid.) Payee chose not to seek an independent professional’s advice. (Amended Petition, Exh. E.) Thus, Petitioner has complied with the statutory disclosure requirements. (Ins. Code § 10139.5(a)(2).)

The transfer agreement (Exh. A) also complies with Insurance Code §§ 10136 and 10138 as required by § 10139.5(a)(3). It does not contravene any applicable statute or order of any court or other governmental authority. (Ins. Code § 10139.5(a)(4).)

Copies of the relevant portions of the annuity contract, qualified assignment agreement, and underlying structured settlement agreement were not submitted as required by Ins. Code § 10139.5(f)(2)(E)-(G). Moreover, neither the Amended Petition nor the supporting declaration provide any detail regarding the terms of the settlement beyond the payments which Petitioner seeks to purchase. The Court must be furnished with the annuity contract, qualified assignment agreement, and structured settlement agreement before the Transfer may be Approved.

Information About Transferor

Payee is 36 years old. (Declaration of Priscilla Serrano ISO Petition. ¶ 8). Payee resides at 1649 West 227^th Street Apt. 5, Torrance, CA 90401. (Id.)

Payee has stated that she is unmarried as required by Insurance Code § 10139.5(c)(2). (¶ 8.)

Payee has stated that she has two minor children, aged 17 and 14, both of whom reside with her, as required by Insurance Code § 10139.5(c)(3). (Id.)

Payee has indicated that she is unemployed and awaiting approval for temporary disability. (Id.) Payee’s monthly income is $1,293.59 in annuity payments, $545.00 in temporary government assistance, and $610.00 in Social Security payments for her daughter which she receives for her late father. (Id.) Payee has therefore attested as to the amount and source of her monthly income as required by Insurance Code § 10139.5(c)(4). (¶ 8.)

Payee has stated that she has no child support obligations, as required by Insurance Code § 10139.5(c)(5). (Id.)

Payee has provided information regarding previous transfers, as required by Insurance Code § 10139.5(c)(6). (¶¶ 9-10.)

In sum, Payee has provided all the information required by Insurance Code § 10139.5(c).

Payee indicates how the proceeds would be used as required by Insurance Code § 10139.5(b)(2): She intends to use the proceeds to obtain new housing and repair her vehicle, as she is currently facing eviction from her current residence for failure to make rent. (Id.) Payee has indicated that she is currently experiencing a financial hardship, as required by Insurance Code § 10139.5(b)(3). (¶ 11.)

Payee has indicated that the periodic payments were not intended for necessary living expenses nor medical expenses, as required by Insurance Code § 10139.5(b)(5)-(7). (¶¶ 6-7.)

Had the Court been furnished with the requisite documentation, the Court would be inclined on this record to find that the transfer is fair, reasonable and in the best interest of Payee. (Insurance Code § 10139.5(a)(1) & (b)(1)-(15).) The Payee understands the terms of the transfer agreement, including those set forth in the § 10136 disclosure statement, as required by Insurance Code § 10139.5(a)(5). In signing the California Disclosure Statement and in her declaration and affidavit in support of the Petition, Payee has evidenced an understanding of the right to cancel and election not to cancel the transfer agreement, as required by Insurance Code § 10139.5(a)(6). The Petitioner has also served a copy of the notice to all interested parties and the Attorney General.

As the Petition does not contain the requisite documentation, the Court cannot approve the transfer of the structured settlement at this time. The Court will therefore continue this matter and direct Petitioner to serve and file copies of the relevant portions of the annuity contract, qualified assignment agreement, and underlying structured settlement agreement, as required.

Accordingly, the petition for approval of structured settlement payments is CONTINUED to Monday, April 14, 2025 at 9:00 AM.

Moving party to give notice, unless waived.

IT IS SO ORDERED.

Dated: March 26, 2025 ___________________________________

Theresa M. Traber

Judge of the Superior Court

Any party may submit on the tentative ruling by contacting the courtroom via email at Smcdept47@lacourt.org by no later than 4:00 p.m. the day before the hearing. All interested parties must be copied on the email. It should be noted that if you submit on a tentative ruling the court will still conduct a hearing if any party appears. By submitting on the tentative you have, in essence, waived your right to be present at the hearing, and you should be aware that the court may not adopt the tentative, and may issue an order which modifies the tentative ruling in whole or in part.