Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_03-cv-01109/USCOURTS-caed-2_03-cv-01109-7/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1332 Diversity-Other Contract

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STIPULATION AND ORDER RE: EXTENDING DEADLINE FOR FILING DOCUMENTS DISPOSING OF THE

CASE AFTER NOTICE OF SETTLEMENT

DENNIS S. ELLIS (SB # 178196)

JASON M. FRANK (SB # 190957)

JACOB T. RISNER (SB # 231591)

PAUL, HASTINGS, JANOFSKY & WALKER LLP

dennisellis@paulhastings.com

jasonfrank@paulhastings.com

jacobrisner@paulhastings.com

515 South Flower Street

Twenty-Fifth Floor 

Los Angeles, CA 90071-2228

Telephone: (213) 683-6000

Facsimile: (213) 627-0705

JEFFREY A. CLARK (SB#70546)

CAREY L. MELTON (SB#221923)

jclark@clark-law.net

cmelton@clark-law.net

CLARK & ASSOCIATES, P.C.

2999 Overland Avenue, Suite 204

Los Angeles CA 90064-4243

Telephone: (310) 815-9440

Facsimile: (310) 815-0518

Attorneys for Plaintiff and Counterdefendants,

GE HEALTHCARE FINANCIAL SERVICES,

a component of GENERAL ELECTRIC 

CAPITAL CORPORATION, GENERAL ELECTRIC

COMPANY, GENERAL ELECTRIC MEDICAL SYSTEMS CO.

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

GE HEALTHCARE FINANCIAL

SERVICES, 

 Plaintiff,

vs.

VIRTUAL IMAGING SYSTEMS, INC.

d/b/a CALIFORNIA HEARTSCAN, and

STEPHEN TRACKMAN,

 

Defendants and 

Counterclaimants,

vs.

GE HEALTHCARE FINANCIAL

SERVICES and GENERAL ELECTRIC

MEDICAL SYSTEMS COMPANY,

 Counterdefendants.

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Case No. CIV-S-03-1109 GEB DAD

STIPULATION AND ORDER RE:

EXTENDING DEADLINE FOR FILING

DOCUMENTS DISPOSING OF THE CASE

AFTER NOTICE OF SETTLEMENT

___________________________________)

Case 2:03-cv-01109-GEB-DAD Document 81 Filed 11/07/06 Page 1 of 5
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STIPULATION AND ORDER RE: EXTENDING DEADLINE FOR FILING DOCUMENTS DISPOSING OF THE

CASE AFTER NOTICE OF SETTLEMENT

IT IS HEREBY STIPULATED and agreed, by and between, GENERAL ELECTRIC

COMPANY, a New York corporation, GE HEALTHCARE, a division of GENERAL ELECTRIC

COMPANY, GE HEALTHCARE FINANCIAL SERVICES, formerly a component of General Electric

Company, now a division of General Electric Capital Corporation and GENERAL ELECTRIC

CAPITAL CORPORATION, a Delaware corporation (hereinafter collectively “Plaintiff” or “the GE

Parties”), KENNETH SANDERS, as duly appointed Chapter 7 Trustee for VIRTUAL IMAGING

SYSTEMS, INC. dba CALIFORNIA HEARTSCAN (“VIS”), a Nevada corporation, and STEPHEN

TRACKMAN, an individual (hereinafter “Trackman”), as follows:

RECITALS

1. On May 22, 2003, GEHFS filed a Complaint in the matter entitled, GE Healthcare

Financial Services v. Virtual Imaging Systems, Inc., United States District Court, Eastern District of

California, case number CIV-S-03-1109 GEB DAD. On June 20, 2003, VIS and Trackman filed an

Answer and Counterclaim against GEHFS and General Electric Medical Systems, the prior name for

GE Healthcare.

2. On June 11, 2003, VIS filed for bankruptcy in the United States Bankruptcy Court,

Eastern District, case number 03-26598. On August 7, 2003, GEHFS filed a Motion for Relief from the

Automatic Stay so that it could pursue certain claims in the GEHFS lawsuit. On September 4, 2003, the

Bankruptcy Court granted GEHFS’ motion for relief from stay. 

3. The parties to the above-captioned litigation have resolved their differences. Trackman,

and the GE Parties have agreed to execute a Stipulation for Entry of Judgment Upon Default and

Mutual Release and Settlement Agreement (the “Settlement Documents”). VIS has agreed to release all

of its claims against the GE Parties. 

4. Because VIS remains in bankruptcy, any Settlement Agreement entered into by VIS must

Case 2:03-cv-01109-GEB-DAD Document 81 Filed 11/07/06 Page 2 of 5
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STIPULATION AND ORDER RE: EXTENDING DEADLINE FOR FILING DOCUMENTS DISPOSING OF THE

CASE AFTER NOTICE OF SETTLEMENT

be approved by the Bankruptcy Court. VIS’ counsel is in the process of drafting a Motion for Order

Approving Settlement Agreement (“Motion”) and anticipates filing the Motion on or before November

8, 2006. Pursuant to the United States Bankruptcy Court, Eastern District, Local Rule 9014-1(f), VIS 

is required to give 28 days notice to interested parties. Thus, the hearing on the Motion could not be

held until the first week in December 2006, at the earliest. This hearing date is beyond November 20,

2006, the date set by this Court for the filing of documents disposing of the case.. 

5. Local Rule 16-160(b) and the Court’s order dated October 31, 2006 require that the

Parties file documents disposing of the case on or before November 20, 2006.

6. While the Parties intend to file a Stipulation for Dismissal, with Prejudice, that allows

the Court to retain jurisdiction for the purpose of enforcing the Settlement Agreement, the Parties

require approval of the Bankruptcy Court of the Settlement Agreement before any action may be taken

by VIS. The settlement of this matter is expressly conditioned upon bankruptcy court approval of the

VIS portion of the settlement.

7. In the interest of judicial economy and in order to fully dispose of the Action, the Parties

request that the deadline to file documents disposing of the case be extended to December 20, 2006. 

IT IS THEREFORE STIPULATED AND REQUESTED AS FOLLOWS:

STIPULATION

A. That the Court provide the Parties until December 20, 2006 to file its documents

disposing of the case so that the Bankruptcy Court may hear and rule on VIS’ Motion for

Order Approving Settlement Agreement. 

B. This Stipulation may be executed in counterparts, which, taken together, shall constitute

Case 2:03-cv-01109-GEB-DAD Document 81 Filed 11/07/06 Page 3 of 5
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STIPULATION AND ORDER RE: EXTENDING DEADLINE FOR FILING DOCUMENTS DISPOSING OF THE

CASE AFTER NOTICE OF SETTLEMENT

the whole of the agreement between the parties. Facsimile signatures shall be considered

as binding as if they were original signatures.

IT IS SO STIPULATED.

DATED: November ___, 2006 SEGAL & KIRBY

By: ____________________________

JAMES R. KIRBY II, attorneys for STEPHEN

TRACKMAN, an individual, and KENNETH

SANDERS, as duly appointed Chapter 7 Trustee

for VIRTUAL IMAGING SYSTEMS, INC. dba

CALIFORNIA HEARTSCAN (“VIS”)

DATED: November ___, 2006 CLARK & ASSOCIATES,

a professional law corporation

By: /s/ Jeffrey A. Clark 

JEFFREY A. CLARK, attorneys for

GENERAL ELECTRIC COMPANY, GE

HEALTHCARE FINANCIAL SERVICES and GE

HEALTHCARE

DATED: November ___, 2006 PAUL, HASTINGS, JANOFSKY & WALKER

LLP

By: /s/ Jason M. Frank 

JASON M. FRANK, attorneys for

GENERAL ELECTRIC COMPANY, GE

HEALTHCARE FINANCIAL SERVICES and GE

HEALTHCARE

ORDER

IT IS SO ORDERED.

Dated: November 6, 2006

 

GARLAND E. BURRELL, JR.

United States District Judge

Case 2:03-cv-01109-GEB-DAD Document 81 Filed 11/07/06 Page 4 of 5
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STIPULATION AND ORDER RE: EXTENDING DEADLINE FOR FILING DOCUMENTS DISPOSING OF THE

CASE AFTER NOTICE OF SETTLEMENT

Case 2:03-cv-01109-GEB-DAD Document 81 Filed 11/07/06 Page 5 of 5