Katiraie et al v. Gottlieb, Chapter 7 Trustee et al

OCR transcription for search; preserved printed pages are authoritative

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28

AUTHENTI

in re:

Functional Restoration Medical Ctr Inc

Debtor(s).

OR

UNITED STATES BANKRUPTCY COURT
CENTRAL DISTRICT OF CALIFORNIA
SAN FERNANDO VALLEY DIVISION

Corona Radiology Medical Center, Inc.,
Sepehr Katiraie, Sephehr Katiraie, Dr.

Plaintiff(s},

Functional Restoration Medical Ctr Inc,
David K Gottlieb, Chapter 7 Trustee,
Ashor Heikali, Ebrahim Heikali, Nasser
Heikali, Moossa Heikali, Nato Fund, Inc.,
Radnet Management, Inc., United
Imaging, LLC, United Medical Imaging
Healthcare, Inc., United Medical Imaging
Inc, United Medical Imaging
Management, Inc., Bruce Yasmeh

Defendant(s).

CATED
ENT
IDN
PO

Case 1:08-ap-01434-GM Doc 298 Filed 07/05/12 Entered 07/09/12 14:55:18 Desc
Main Document

Page 1 of 3
miESTE A FILED
RIGINAL
JUL - 5 2Ui¢

ERM, 0.5. BANKRUPTCY GO 7
CENTRAL DISTRICT OF CALIFC.ASIA
ft Deputy Clerk

Case No.: 1:06-bk-10306-GM

Adv No: 1:08-ap-01434-GM

CHAPTER 7

COURT WRITTEN TENTATIVE RULING
REGARDING MOTION FOR
RECONSIDERATION OF A LIMITED
PORTION OF THE COURT’S ORDER ON
MOTIONS FOR SUMMARY JUDGMENT
AND CONCERNING CLAIMS FOR RELIEF 3
AND 5

Date: July 3, 2012
Time: 10:00 a.m.
Courtroom: 303

Court written tentative ruling attached to this cover sheet.

Case 1:08-ap-01434-GM Doc 298 Filed 07/05/12 Entered 07/09/12 14:55:18 Desc
Main Document Page 2 of 3

United States Bankruptcy Court
Central District of California

San Fernando Valley
Judge Geraldine Mund, Presiding

Courtroom 303 Calendar

Tuesday, July 3, 2012 Hearing Room 303
10:00 am
1:06-10306 Functional Restoration Medical Ctr Inc Chapter 7
Adv#: 1:08-01434 — Katiraie et al v. Gottlieb, Chapter 7 Trustee et al
#3.00 Motion for Reconsideration of a Limited Portion of the

Court's Order on Motions for Summary Judgment and
Concerning Claims for Relief 3 and 5
(fr 6/19/12)

Docket #: 274

Courtroom Deputy:
- NONE LISTED -

Tentative Ruling:

This motion deals solely with the issue of granting summary adjudication as to the trustee
on the claims for conversion and for an accounting.

1. Conversion - the theory is that there are factual disputes as to whether the estate
converted Katiraie's interests. Although the sale order specifically excluded the plaintiffs’
interests from being sold, the business as a whole was sold. The argument is the the
Asset Purchase Agreement includes a list of the assets of each of the Corona Center and
that included much of its intellectual and proprietary property and the goodwill. Thus the
estate gave to United "effectively all of the business and the business assets at the
Corona Center."

2. Accounting - the plaintiffs are not seeking the post-petition/pre-sale period accounting,
but an accounting of the Corona billings that were actually collected for that period after
the sale of the Corona Center. [However the movant admits that these were collected by
United and not by the Trustee. ]

Opposition by the Trustee
The issue on conversion is a continued collateral attack on the sale order. Beyond

everything else, nothing of value was received by the estate other than the carved out
amount by the secured creditor and that was from an interest that was superior to that of
the plaintiffs.

As to the accounting, there is nothing for the trustee to account fo because all that the

7/2/2012 3:05:32PM Page 6 of 119

Case 1:08-ap-01434-GM Doc 298 Filed 07/05/12 Entered 07/09/12 14:55:18 Desc

Main Document Page 3of3

United States Bankruptcy Court
Central District of California

San Fernando Valley
Judge Geraldine Mund, Presiding

Courtroom 303 Calendar

Tuesday, July 3, 2012 Hearing Room 303
10:00 am
Cont... Functional Restoration Medical Ctr Inc Chapter 7

estate received was the carve-out.

Proposed Ruling

The sale order and APA are absolutely clear that all that was sold was the estate's
interest in the property. First of all, the estate received nothing, so there is nothing to
account for, But also, the only interest that plaintiffs had was a fraction of the business,
etc. Katiraie was not a 100% owner of anything that was sold. Thus the fact that items
were listed on the APA is totally irrelevant. Although Katiraie would like me to rule that he
owned 100% of the goodwill and 100% of the personal property, etc., there is no dispute
that he did not. When United and later Radnet took the property, they took only the
portion that the estate owned. The Trustee did not convert anything.

As to accounts receivables obtained by the Trustee after the sale, there were none and
no accounting has to be made.

Deny the motion for reconsideration.

Party Information
Attorney(s):
Kasra Torabi Represented By
Kasra Torabi
Debtor(s):
Functional Restoration Medical Ctr Represented By
Daniel A Lev
Michael S Kogan
David Doss Piper
Defendant(s):
Functional Restoration Medical Ctr Represented By

Daniel A Lev

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