Case Number: KS017864 Hearing Date: June 02, 2014 Dept: J

In re Gregory Hunter (KS017864)

PETITION FOR APPROVAL OF TRANSFER OF STRUCTURED SETTLEMENT PAYMENT

Moving Party: Petitioner J.G. Wentworth Originations, LLC

Respondent: No opposition filed

POS: Moving OK

Petitioner J.G. Wentworth Originations, LLC petitions pursuant to Cal Ins Code §§ 10134 et seq. for approval of the transfer of a certain structured settlement payment right of Gregory Hunter. (Petition, Exhibit A, Purchase Contract.) Mr. Hunter is transferring one payment of $68,014.18 due on January 21, 2016 (Petition ¶ 2.)

If approved, Mr. Hunter will receive $50,000.00 from this transaction. The future payment of $68,014.18 has a discounted present value equal to $65,322.91 which is calculated by applying the discount rate of 2.0% utilized by the Internal Revenue Service to value annuities in probate proceedings. The purchase price to be paid was calculated using a discount rate of 18.04%. (Id. at Exhibit B, California Disclosure Statement.)

Under Cal Ins. Code section 10139.5(a), a direct or indirect transfer of structured settlement payment rights from a payee to a transferee is not effective unless the transfer has been approved in advance by Court order based on express written findings by the court 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 that advice in writing;
3. 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 reasonably understands the terms of the transfer agreement, including the terms set forth in the disclosure statement required by Section 10136;
6. The payee reasonably understands and does not wish to exercise the payee’s right to cancel the transfer agreement.

Mr. Hunter is 23 years old and married with one minor child, born 12/09/12. (Petition, Page 4, Line 13.) He indicates that he is currently experiencing a financial hardship. (Decl of Gregory Hunter, para 11). He is unemployed and attending school full time, and he has tuition costs, credit card debt, and car loan debt. (Ibid.) He does not have any past transactions with J.G. Wentworth Originations LLC or another company. (Decl at para. 9-10)

The petition substantially complies with the requirements under Cal Ins. Code §§ 10134 et seq.:

• Mr. Hunter was presented with a separate disclosure statement. (Petition, Exhibit B.)
• The petition is filed with a court in the county where Mr. Hunter resides in Hacienda Heights, County of Los Angeles. (Hunter Decl. ¶ 1.)
• The petition is served all on interested parties. (Proof of Service filed on 4/07/14)
• The petition contains the following documents pursuant to Cal Ins. Code §10139.5(c)(2)
• A copy of the transferee’s current petition. (Petition.)
• A copy of the transfer agreement. (Petition, Exhibit A.)
• A copy of the disclosure required in subdivision (b) of Section 10136. (Petition, Exhibit B.)
• Notification that any interested party is entitled to support, oppose, or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or by participating in the hearing. (Notice of Petition.)
• Notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed, which may not be less than 15 days after service of the transferee’s notice, in order to be considered by the court. (Notice of Petition.)
• Explanation of Expenses Deducted from the Purchase Price. (According to the Disclosure Notice, there are no expenses to be deducted from the purchase price.)

While the petition fails to attach copies of the annuity contract, qualified assignment agreement and the underlying structured settlement agreement as required under Cal Ins. Code §10139.5(f)(2)(E), (F) and (G), it doe attach a Confirmation of Settlement of Hunter Family (Ex. C). If a copy of a document described in subparagraph (E), (F), or (G) is unavailable or cannot be located, then the transferee is not required to attach a copy of that document to the petition or notice of the proposed transfer if the transferee satisfies the court that reasonable efforts to locate and secure a copy of the document have been made, including making inquiry with the payee. (Cal Ins. Code §10139.5(f)(2)(H).) It appears that Mr. Hunter made reasonable efforts to locate and secure a copy of the documents.

The court will hear from Mr. Hunter to determine that he fully understands the consequences of the transaction.