Preview
(FILED: MADISON COUNTY CLERK 1271972023 02:55 PM INDEMDBS
. NBE2622126a6
NYSCEF DOC. NO. 16 RECEIVED NYSCEF: 12/19/2023
STATE OF NEW YORK
SUPREME COURT CHAMBERS
y
CORTLAND COUNTY COURTHOUSE
46 GREENBUSH STREET
CORTLAND, NEW YORK 13045-02772
are
(607) 218-3340
FAX (212) 520-6830
MARK G. MASLER CRTMasler_Chambers@nycourts.gov MICHAEL P. PORCIELLO, LAW CLERK
JUSTICE SHERYL A, HOLBROOK, SECRETARY
November 17, 2021
Dina L. Hamerman, Esq.
Yankwitt LLP
140 Grand Street, Suite 705
White Plains, New York 10601
Via NYSCEF LETTER DECISION, ORDER,
AND JUDGMENT
Ms. Kelly Sorrells
5388 Lincklaen Road
Cuyler, New York 13158
RE: Matter of J.G. Wentworth Originations, LLC (Sorrells)
Cortland County Index No. EF21-549; RJI No. 2021-0296-M
Dear Attorney Hamerman and Ms. Sorrells:
Petitioner seeks judicial approval, pursuant to General Obligations Law § 5-1706, for the
proposed sale of a structured settlement payment by Kelly Sorrells. In summary, petitioner
seeks to purchase one lump sum payment of $44,493 due to Ms. Sorrells on June 15, 2029,
which has a discounted present value of $41,214.93, for a gross price of $20,000. The effective
discount rate on the sales price is 10.96%. Ms. Sorrells proposes, in conclusory fashion, to
apply $15,000 of the proceeds toward a personal loan, and $5,000 toward lumber and the
construction of a new porch (NY St Cts Elec Filing [NYSCEF] Doc No. 10, Sorrells aff, 4 11).
Ms. Sorrells is 34 years old and lives in Cuyler, New York. She is married and has two
minor dependents, ages 8 and 6. She is currently employed by Gutchess Lumber with an annual
salary of approximately $30,000. Her husband is employed as a carpenter. Pursuant to a
structured settlement agreement she became entitled to monthly payments of $1,500 guaranteed
from November 15, 2019, through June 15, 2049, and thereafter continuing for life, as well as
two guaranteed lump sum payments: (1) a payment of $25,000 due June 15, 2024, and (2) a
payment of $44,493.00 due June 15, 2029.
The petition discloses two prior transfers of Ms. Sorrells’ structured settlement payments
to petitioner. In September 2019 the Supreme Court, Madison County (Cerio, J.) approved the
sale of 120 monthly payments (from November 2019 through October 2029) to petitioner for
$102,500 (see Sup Ct, Madison County, Index No. EF2019-1802). Ms. Sorrells represented at
1 of 3
INDENDS® . NBE282 212008
(FILED: MADISON COUNTY CLERK 1271972023 02:55 PM
NYSCEF DOC. NO. 16 RECEIVED NYSCEF: 12/19/2023
Matter of J.G. Wentworth, LLC (Sorrells)
November 17, 2021
Page 2
the time that she intended to use the proceeds to pay off an outstanding auto loan and credit card
debts and use the remainder toward the purchase of a home. In September 2020 this court
approved the sale of 84 monthly payments (from November 2029 through October 2036) for
$58,000 (see Sup Ct, Cortland County, Index No. EF20-622). Ms. Sorrells represented at the
time that she intended to use the proceeds to purchase a car, remodel her kitchen, and install an
outdoor deck and inground pool. The petition also discloses that, by petition filed August 5,
2021, petitioner sought approval of a purchase of the $25,000 payment due to Ms. Sorrells on
June 15, 2024, for a gross price of $14,000. In support of the August 2021 petition (the prior
proceeding), Ms. Sorrells stated her intent to use the proceeds from the proposed sale to repair
her driveway. This court denied the petition by decision, order, and judgment entered October
5, 2021, because it was insufficient to show that the transaction was fair and reasonable or in the
best interests of Ms. Sorrells (see Sup Ct, Cortland County, Index No. EF21-403).
The court similarly finds that the petition in this proceeding must be denied because it is
insufficient to show that the transaction is in Ms. Sorrells’ best interests (see Matter of J.G.
Wentworth Originations, LLC v McDonald, 67 Misc 3d 1239[A], 2020 NY Slip’Op 50790[U],
*3 [Sup Ct, Warren County 2020]; see Ashlee Calendar, LLC v B.M., 72 Misc 3d 1209[A], 2021
NY Slip Op 50685[U], *6-8 [Sup Ct, St. Lawrence County 2021]). As noted above, within
three years of the current application Ms. Sorrells has transferred, with court approval, all of her
guaranteed monthly payments of $1,500 due through October 2036, a significant sum of money.
This proceeding was commenced almost immediately upon conclusion of the prior proceeding,
in which this court denied the application to approve the sale of the lump sum payment due to
Ms. Sorrells in 2024. The disclosure statement and statement of professional representation
submitted in support of this application are both dated October 6, 2021, the day after the order in
the prior proceeding. Frequent resort to sale of portions of a structured settlement at a deep
discount is not a good use of this valuable asset (see generally Matter of Settlement Funding of.
N.Y., LLC [Smith], 31 Mise 3d 1221[A], 2011 NY Slip Op 50790[U], *2 [Sup Ct, Cortland
County 2011]; Matter of Settlement Funding of N.Y. LLC, 16 Misc 3d 1134[A], 2007 NY Slip
Op 51689[U], *2-4 [Sup Ct, Broome County 2007]).
Moreover, the petition contains no information establishing that Ms. Sorrells used the
proceeds from the prior proceedings in the manner she proposed. It likewise contains no
information about the personal loan she intends to pay off, its interest rate, current balance, or the
purpose for which she borrowed the funds. In short, there is nothing to suggest that the terms of
the proposed transfer are in any way preferable to the terms of the personal loan. In light of the
foregoing, the court declines to execute the proposed order to show cause, the petition is denied,
and the proceeding is dismissed.
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INDEMDBS
. NBE2622126a6
(FILED: MADISON COUNTY CLERK 1271972023 02:55 PM
NYSCEF DOC. NO. 16 RECEIVED NYSCEF: 12/19/2023
Matter of J.G. Wentworth, LLC (Sorrells)
November 17, 2021
Page 3
This decision shall constitute the order and judgment of the court. The transmittal of
copies of this decision, order and judgment by the court shall not constitute notice of entry.
Dated: November 17, 2021
Cortland, New York
ENTER:
M6 ML
HON. MARK G. MASLER
Supreme Court Justice
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Preview
(FILED: MADISON COUNTY CLERK 1271972023 02:55 PM INDEMDBS . NBE2622126a6 NYSCEF DOC. NO. 16 RECEIVED NYSCEF: 12/19/2023 STATE OF NEW YORK SUPREME COURT CHAMBERS y CORTLAND COUNTY COURTHOUSE 46 GREENBUSH STREET CORTLAND, NEW YORK 13045-02772 are (607) 218-3340 FAX (212) 520-6830 MARK G. MASLER CRTMasler_Chambers@nycourts.gov MICHAEL P. PORCIELLO, LAW CLERK JUSTICE SHERYL A, HOLBROOK, SECRETARY November 17, 2021 Dina L. Hamerman, Esq. Yankwitt LLP 140 Grand Street, Suite 705 White Plains, New York 10601 Via NYSCEF LETTER DECISION, ORDER, AND JUDGMENT Ms. Kelly Sorrells 5388 Lincklaen Road Cuyler, New York 13158 RE: Matter of J.G. Wentworth Originations, LLC (Sorrells) Cortland County Index No. EF21-549; RJI No. 2021-0296-M Dear Attorney Hamerman and Ms. Sorrells: Petitioner seeks judicial approval, pursuant to General Obligations Law § 5-1706, for the proposed sale of a structured settlement payment by Kelly Sorrells. In summary, petitioner seeks to purchase one lump sum payment of $44,493 due to Ms. Sorrells on June 15, 2029, which has a discounted present value of $41,214.93, for a gross price of $20,000. The effective discount rate on the sales price is 10.96%. Ms. Sorrells proposes, in conclusory fashion, to apply $15,000 of the proceeds toward a personal loan, and $5,000 toward lumber and the construction of a new porch (NY St Cts Elec Filing [NYSCEF] Doc No. 10, Sorrells aff, 4 11). Ms. Sorrells is 34 years old and lives in Cuyler, New York. She is married and has two minor dependents, ages 8 and 6. She is currently employed by Gutchess Lumber with an annual salary of approximately $30,000. Her husband is employed as a carpenter. Pursuant to a structured settlement agreement she became entitled to monthly payments of $1,500 guaranteed from November 15, 2019, through June 15, 2049, and thereafter continuing for life, as well as two guaranteed lump sum payments: (1) a payment of $25,000 due June 15, 2024, and (2) a payment of $44,493.00 due June 15, 2029. The petition discloses two prior transfers of Ms. Sorrells’ structured settlement payments to petitioner. In September 2019 the Supreme Court, Madison County (Cerio, J.) approved the sale of 120 monthly payments (from November 2019 through October 2029) to petitioner for $102,500 (see Sup Ct, Madison County, Index No. EF2019-1802). Ms. Sorrells represented at 1 of 3 INDENDS® . NBE282 212008 (FILED: MADISON COUNTY CLERK 1271972023 02:55 PM NYSCEF DOC. NO. 16 RECEIVED NYSCEF: 12/19/2023 Matter of J.G. Wentworth, LLC (Sorrells) November 17, 2021 Page 2 the time that she intended to use the proceeds to pay off an outstanding auto loan and credit card debts and use the remainder toward the purchase of a home. In September 2020 this court approved the sale of 84 monthly payments (from November 2029 through October 2036) for $58,000 (see Sup Ct, Cortland County, Index No. EF20-622). Ms. Sorrells represented at the time that she intended to use the proceeds to purchase a car, remodel her kitchen, and install an outdoor deck and inground pool. The petition also discloses that, by petition filed August 5, 2021, petitioner sought approval of a purchase of the $25,000 payment due to Ms. Sorrells on June 15, 2024, for a gross price of $14,000. In support of the August 2021 petition (the prior proceeding), Ms. Sorrells stated her intent to use the proceeds from the proposed sale to repair her driveway. This court denied the petition by decision, order, and judgment entered October 5, 2021, because it was insufficient to show that the transaction was fair and reasonable or in the best interests of Ms. Sorrells (see Sup Ct, Cortland County, Index No. EF21-403). The court similarly finds that the petition in this proceeding must be denied because it is insufficient to show that the transaction is in Ms. Sorrells’ best interests (see Matter of J.G. Wentworth Originations, LLC v McDonald, 67 Misc 3d 1239[A], 2020 NY Slip’Op 50790[U], *3 [Sup Ct, Warren County 2020]; see Ashlee Calendar, LLC v B.M., 72 Misc 3d 1209[A], 2021 NY Slip Op 50685[U], *6-8 [Sup Ct, St. Lawrence County 2021]). As noted above, within three years of the current application Ms. Sorrells has transferred, with court approval, all of her guaranteed monthly payments of $1,500 due through October 2036, a significant sum of money. This proceeding was commenced almost immediately upon conclusion of the prior proceeding, in which this court denied the application to approve the sale of the lump sum payment due to Ms. Sorrells in 2024. The disclosure statement and statement of professional representation submitted in support of this application are both dated October 6, 2021, the day after the order in the prior proceeding. Frequent resort to sale of portions of a structured settlement at a deep discount is not a good use of this valuable asset (see generally Matter of Settlement Funding of. N.Y., LLC [Smith], 31 Mise 3d 1221[A], 2011 NY Slip Op 50790[U], *2 [Sup Ct, Cortland County 2011]; Matter of Settlement Funding of N.Y. LLC, 16 Misc 3d 1134[A], 2007 NY Slip Op 51689[U], *2-4 [Sup Ct, Broome County 2007]). Moreover, the petition contains no information establishing that Ms. Sorrells used the proceeds from the prior proceedings in the manner she proposed. It likewise contains no information about the personal loan she intends to pay off, its interest rate, current balance, or the purpose for which she borrowed the funds. In short, there is nothing to suggest that the terms of the proposed transfer are in any way preferable to the terms of the personal loan. In light of the foregoing, the court declines to execute the proposed order to show cause, the petition is denied, and the proceeding is dismissed. 2 of 3 INDEMDBS . NBE2622126a6 (FILED: MADISON COUNTY CLERK 1271972023 02:55 PM NYSCEF DOC. NO. 16 RECEIVED NYSCEF: 12/19/2023 Matter of J.G. Wentworth, LLC (Sorrells) November 17, 2021 Page 3 This decision shall constitute the order and judgment of the court. The transmittal of copies of this decision, order and judgment by the court shall not constitute notice of entry. Dated: November 17, 2021 Cortland, New York ENTER: M6 ML HON. MARK G. MASLER Supreme Court Justice 3 of 3