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LIMITED OBJECTION OF CERNER CORPORATION CORE/0011920.0280/161903958.1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Lawrence J. Hilton, Esq., (SBN 156524) One LLP 4000 MacArthur Blvd., East Tower, Suite 500 Newport Beach, CA 92660 Telephone: (949) 502-2870 Facsimile: (949) 258-5081 Email : [email protected] Darrell W. Clark, Esq. STINSON LLP 1775 Pennsylvania Ave. N.W., Suite 800 Washington, DC 20006-4605 Telephone: (202) 785-9100 Facsimile : (202) 785-9163 Email: [email protected] Attorneys for Cerner Corporation UNITED STATES BANKRUPTCY COURT CENTRAL DISTRICT OF CALIFORNIA LOS ANGELES DIVISION In re VERITY HEALTH SYSTEM OF CALIFORNIA, INC., et al., Debtors and Debtors in Possession. [X] Affects All Debtors Affects Verity Health System of California, Inc. Affects O’Connor Hospital Affects Saint Louise Regional Hospital Affects St. Francis Medical Center Lead Case No. 2:18-bk-20151-ER Chapter 11 Jointly Administered with: Case No. 2:18-bk-20162-ER Case No. 2:18-bk-20163-ER Case No. 2:18-bk-20164-ER Case No. 2:18-bk-20165-ER Case No. 2:18-bk-20167-ER Case No. 2:18-bk-20168-ER Case No. 2:18-bk-20169-ER Case No. 2:18-bk-20171-ER Case No. 2:18-bk-20172-ER Case No. 2:18-bk-20173-ER Case 2:18-bk-20151-ER Doc 6103 Filed 09/23/20 Entered 09/23/20 16:04:40 Desc Main Document Page 1 of 13

Transcript of One LLP STINSON LLP

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LIMITED OBJECTION OF CERNER CORPORATION

CORE/0011920.0280/161903958.1

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Lawrence J. Hilton, Esq., (SBN 156524) One LLP 4000 MacArthur Blvd., East Tower, Suite 500 Newport Beach, CA 92660 Telephone: (949) 502-2870 Facsimile: (949) 258-5081 Email : [email protected] Darrell W. Clark, Esq. STINSON LLP 1775 Pennsylvania Ave. N.W., Suite 800 Washington, DC 20006-4605 Telephone: (202) 785-9100 Facsimile : (202) 785-9163 Email: [email protected] Attorneys for Cerner Corporation

UNITED STATES BANKRUPTCY COURT

CENTRAL DISTRICT OF CALIFORNIA

LOS ANGELES DIVISION

In re

VERITY HEALTH SYSTEM OF CALIFORNIA, INC., et al.,

Debtors and Debtors in Possession. [X] Affects All Debtors

Affects Verity Health System of California, Inc.

Affects O’Connor Hospital Affects Saint Louise Regional

Hospital Affects St. Francis Medical Center

Lead Case No. 2:18-bk-20151-ER Chapter 11 Jointly Administered with: Case No. 2:18-bk-20162-ER Case No. 2:18-bk-20163-ER Case No. 2:18-bk-20164-ER Case No. 2:18-bk-20165-ER Case No. 2:18-bk-20167-ER Case No. 2:18-bk-20168-ER Case No. 2:18-bk-20169-ER Case No. 2:18-bk-20171-ER Case No. 2:18-bk-20172-ER Case No. 2:18-bk-20173-ER

Case 2:18-bk-20151-ER Doc 6103 Filed 09/23/20 Entered 09/23/20 16:04:40 DescMain Document Page 1 of 13

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Docket #6103 Date Filed: 9/23/2020
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Affects St. Vincent Medical Center Affects Seton Medical Center Affects O’Connor Hospital

Foundation Affects Saint Louise Regional

Hospital Foundation

Affects St. Francis Medical Center of Lynwood Foundation

Affects St. Vincent Foundation Affects St. Vincent Dialysis Center,

Inc. Affects Seton Medical Center

Foundation Affects Verity Business Services Affects Verity Medical Foundation Affects Verity Holdings, LLC Affects De Paul Ventures, LLC Affects De Paul Ventures – San Jose

Dialysis, LLC

Debtors and Debtors in Possession.

Case No. 2:18-bk-20175-ER Case No. 2:18-bk-20176-ER Case No. 2:18-bk-20178-ER Case No. 2:18-bk-20179-ER Case No. 2:18-bk-20180-ER Case No. 2:18-bk-20181-ER Hearing: Date: October 7, 2020 Time: 10:00 a.m. Place: 255 E. Temple Street Los Angeles, CA 90012 Courtroom 1568 Judge: Hon. Ernest M. Robles LIMITED OBJECTION OF CERNER CORPORATION TO DEBTORS’ NINTH OMNIBUS MOTION TO REJECT, PURSUANT TO 11 U.S.C. § 365(A), CERTAIN TRANSITION EXECUTORY CONTRACTS AND UNEXPIRED LEASES; [DKT. NO. 6037]

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COMES NOW Cerner Corporation, on behalf of itself and its affiliates

(collectively, “Cerner”), creditors and parties-in-interest of Verity Health System of

California, Inc., et al. (“Debtors”), by and through undersigned counsel, and files

this limited objection (“Objection”) to the Debtors’ Ninth Omnibus Motion to

Reject, Pursuant to 11 U.S.C. § 365(A), Certain Transition Executory Contracts and

Unexpired Leases (the “Rejection Motion”) [Docket No. 6037]. In support of its

Objection, Cerner states as follows:

BACKGROUND

1. On August 31, 2018 (“Petition Date”), the Debtors each filed a Petition

for relief under Chapter 11 of Title 11 of the United States Code, 11 U.S.C. §§ 101 –

1532 (the “Bankruptcy Code”), in the United States Bankruptcy Court for the

Central District of California.

2. Cerner Health Services, Inc. (“Cerner Health”), and Verity Health

System of California, Inc. (“VHS”), are parties to an agreement dated March 27,

2002 as amended (the “Agreement”). The Agreement was originally between

Siemens Medical Solutions USA, Inc., and Verity Health Systems. On February 2,

2015, it was assigned to Cerner Health. See the attached Declaration of Darrell W.

Clark in Support of the Limited Objection of Cerner Corporation to the Notice to

Counterparties to Executory Contracts and Unexpired Leases of the Debtors that

May Be Assumed and Assigned Related to Seton Medical Center [Dkt. No. 6037]

(hereafter “Clark Decl.”), ¶ 4.

3. Services under the agreement are described as a “Services – Software

Maintenance and Support” and relate to accounts receivable, collection, medical

records and reimbursement management, as well as a laboratory information system.

Clark Decl., ¶ 5.

4. O’Connor Hospital, Sainte Louise Regional Hospital, VHS, Seton

Medical Center, St. Vincent Medical Center, and St. Francis Medical Center are (or

were) all serviced by the Agreement. Although the data is stored separately for each

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facility, Cerner’s services are provided to the Debtors under the one agreement.

Clark Decl., ¶ 6.

5. During the course of this Chapter 11 proceeding, services to O’Connor

Hospital and Sainte Louise Regional Hospital were terminated and termination

agreements were executed between the Debtors and Cerner. Clark Decl., ¶ 7.

6. Cerner continues to supply services to VHS, Seton Medical Center, St.

Vincent Medical Center, and St. Francis Medical Center. As of the date of this

Objection, the Debtors owe Cerner the following post-petition amounts:

Facility Total Post-Petition Past Due Post-Petition

Seton $18,098.30 $9,049.15

St. Vincent $24,709.04 $12,354.52

St. Francis $19,011.38 $9,505.69

VHS $0.00 $0.00

TOTAL: $61,818.72 $30,909.36

Clark Decl., ¶ 8.

7. The Agreement is non-assignable and is a non-exclusive software

license. Certain portions of the agreement recognize that breach of an intellectual

property license carries certain injunctive relief necessary to preserve Cerner’s rights

as the licensor. Clark Decl., ¶ 9.

8. On September 3, 2020, the Debtors filed the Rejection Motion. The

Agreement was included on Exhibit A to the Rejection Motion as one of the

executory contracts sought be rejected effective “as of October 30, 2020, or such

other (a) earlier date that may be specified by the Debtors in a notice given to the

applicable counterparty or (b) later date as may be agreed by the Debtors and the

applicable counterparty. (the “Rejection Date”).” Rejection Motion, p. 1.

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LIMITED OBJECTION

9. The Debtors seek to reject the Agreement and Cerner generally does

not object to rejection. Clark Decl., ¶10

10. However, the Debtors also seeks to use the Agreement beyond the

effective date of the Plan. With the flexible Rejection Date, the Rejection Motion

seeks to use the Agreement through October, 2020 or even later as agreed by the

parties.

11. Cerner does not agree to the use of its license beyond the effective date

of the Plan. Clark Decl., ¶ 11.

12. Cerner’s concerns relate to the use of its license without payment,

without consent of Cerner, and, potentially, the use of its license by the buyers of the

Debtors’ facilities. Clark Decl., ¶ 12.

13. In prior cases before this Court, notably Gardens Regional Hospital,

Case No. 16-17463-ER, Cerner’s agreement was rejected. Years later, Cerner

discovered that after confirmation and rejection, its licensed software was

continually used to access health information for submission of claims, production

of documents for defense of the estate, and/or maintenance of records for patients.

No payments were made to Cerner. The plan trustee never sought permission to use

the license and Cerner had taken the debtor on faith that its rejection meant no

further use. Clark Decl., ¶ 13.

14. In the St. Michael’s Medical Center case, Case No. 15-24999, Bankr.

D. N.J., the hospital assets were sold to Prime Healthcare (purchaser of the Debtors’

St. Francis Medical Center assets) and a transition of services agreement was

executed between the debtor and the buyers. It took Cerner years to obtain a

consensus on who owed Cerner funds following the sale of the assets to Prime.

Clark Decl., ¶ 14.

15. The issues are beyond monetary. With an obligation to maintain the

software and all of its sublicenses, Cerner is forced to upgrade the licensed solutions

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well into the future. Also, in cases were Cerner is remotely hosting a debtor’s

information, Cerner is obligated to maintain that information without a clear

understanding that the health data will be destroyed. Clark Decl., ¶ 15.

16. For these reasons, Cerner has a deep concern that the instant motion,

seeking to reject, but to maintain use for an orderly wind down, sets Cerner up for

similar treatment. Clark Decl., ¶ 16.

17. In the Gardens case, when Cerner learned of the unauthorized usage,

Cerner was tasked with seeking payment from the plan trustee well after

confirmation. No one stepped forward to seek permission to use the license or

offered to pay in exchange for using the license. Cerner was forced to police the

fiduciary. The plan trustee had no contractual or legal obligation to pay outside of a

quantum meruit theory or patent infringement. While it was ultimately resolved

with a payment, the procedure described in the Rejection Motion leaves Cerner with

too much uncertainty to simply consent to the relief sought. Clark Decl., ¶ 17.

18. Here, Cerner has similar concerns about the Debtors’ request to

continue to use the Agreement without a firm termination date and without other

commitments. Those commitments include: (a) an order directing that Cerner’s

post-petition balances are to be paid timely; (b) a legal entity agreeing to be

responsible for the timely payment of all of Cerner’s invoices submitted post-

effective date; (c) some adequate assurance of payment supplied in the form of a

deposit; (d) an agreement to return the licensed software and destroy all copies and

back-ups of the software upon termination; (e) Cerner being granted the right to

destroy all VHS information in its possession upon termination; (f) the purchasers of

the Debtors’ assets certifying that they will not use nor accept assignment of

Cerner’s Agreement; and (g) the Court maintaining jurisdiction over any disputes.

Clark Decl., ¶ 18.

19. Finally, the Debtors’ Rejection Motion, seeking to continue to use the

Agreement in a rejected state, is akin to a disguised assumption of the Agreement.

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Yet Cerner has none of the benefits of assumption. It has been sued for a preference

by several of the Debtors and it has an unpaid pre-petition claim. Clark Decl., ¶ 19.

WHEREFORE, Cerner Corporation respectfully requests that this Court enter

an Order conditioning any post-effective date use of the Agreement upon Cerner’s

consent and implementation of the commitments demanded herein, and granting

such other and further relief as is necessary and proper.

DATED: September 23, 2020

One LLP

By: /s/ Lawrence J. Hilton LAWRENCE J. HILTON Attorneys for Cerner Corporation

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This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California.

June 2012 F 9013-3.1.PROOF.SERVICE CORE/0011920.0280/161903958.1

PROOF OF SERVICE OF DOCUMENT I am over the age of 18 and not a party to this bankruptcy case or adversary proceeding. My business address is:

One LLP, 4000 MacArthur Boulevard, East Tower, Suite 500, Newport Beach, CA 92660 A true and correct copy of the foregoing document entitled (specify): LIMITED OBJECTION OF CERNER CORPORATION TO DEBTORS’ NINTH OMNIBUS MOTION TO REJECT, PURSUANT TO 11 U.S.C. § 365(A), CERTAIN TRANSITION EXECUTORY CONTRACTS AND UNEXPIRED LEASES [DKT. NO. 6037] will be served or was served in the manner stated below: 1. TO BE SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING (NEF): Pursuant to controlling General Orders and LBR, the foregoing document will be served by the court via NEF and hyperlink to the document. On September 23, 2020, I checked the CM/ECF docket for this bankruptcy case or adversary proceeding and determined that the following persons are on the Electronic Mail Notice List to receive NEF transmission at the email addresses stated below: Service information continued on attached page 2. SERVED BY UNITED STATES MAIL: On September 23, 2020, I served the following persons and/or entities at the last known addresses in this bankruptcy case or adversary proceeding by placing a true and correct copy thereof in a sealed envelope in the United States mail, first class, postage prepaid, and addressed as follows. Listing the judge here constitutes a declaration that mailing to the judge will be completed no later than 24 hours after the document is filed. Service information continued on attached page 3. SERVED BY PERSONAL DELIVERY, OVERNIGHT MAIL, FACSIMILE TRANSMISSION OR EMAIL (state method for each person or entity served): Pursuant to F.R.Civ.P. 5 and/or controlling LBR, on September 23, 2020, I served the following persons and/or entities by personal delivery, overnight mail service, or (for those who consented in writing to such service method), by facsimile transmission and/or email as follows. Listing the judge here constitutes a declaration that personal delivery on, or overnight mail to, the judge will be completed no later than 24 hours after the document is filed. Via Email: Service information continued on attached page I declare under penalty of perjury under the laws of the United States that the foregoing is true and correct.

September 23, 2020 /s/ Robin Golder Date Printed Name Signature

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TO BE SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING (NEF): Mailing Information for Case 2:18-bk-20151-ER

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Amir Gamliel [email protected], [email protected]; [email protected]

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Lawrence J Hilton [email protected], [email protected], [email protected], [email protected] ,[email protected], [email protected]

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Florice Hoffman [email protected], [email protected]

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David I Horowitz [email protected], [email protected]; [email protected]; [email protected]; [email protected]

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Steven J Kahn [email protected]

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Christian T Kim [email protected], [email protected]

Jane Kim [email protected]

Monica Y Kim [email protected], [email protected]

Benjamin R King [email protected], [email protected]; [email protected]; [email protected]

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Mark D Plevin [email protected], [email protected]

Steven G. Polard [email protected], [email protected]; [email protected]; [email protected]

David M Powlen [email protected], [email protected]

Christopher E Prince [email protected], [email protected]; [email protected]

Lori L Purkey [email protected]

William M Rathbone [email protected], [email protected]; [email protected]

Jason M Reed [email protected]

Jeffrey M. Reisner [email protected], #[email protected]; [email protected]; [email protected]

Michael B Reynolds [email protected], [email protected]

J. Alexandra Rhim [email protected]

Emily P Rich [email protected], [email protected]

Robert A Rich , [email protected]

Lesley A Riis [email protected]

Debra Riley [email protected]

Jason E Rios [email protected], [email protected]

Julie H Rome-Banks [email protected]

Mary H Rose [email protected]

Douglas B Rosner [email protected]

Gregory A Rougeau [email protected]

Megan A Rowe [email protected], [email protected]

Gregory M Salvato [email protected], [email protected]; [email protected]; [email protected]

Nathan A Schultz [email protected]

Mark A Serlin [email protected], [email protected]

Seth B Shapiro [email protected]

David B Shemano [email protected]

Joseph Shickich [email protected]

Mark Shinderman [email protected], [email protected];[email protected]

Kyrsten Skogstad [email protected], [email protected]

Michael St James [email protected]

Joseph L Steinfeld [email protected], [email protected]; [email protected]; [email protected]; [email protected]

Andrew Still [email protected], [email protected]

Jason D Strabo [email protected], [email protected]

Sabrina L Streusand [email protected]

Ralph J Swanson [email protected], [email protected]

Michael A Sweet [email protected], [email protected]; [email protected]

Case 2:18-bk-20151-ER Doc 6103 Filed 09/23/20 Entered 09/23/20 16:04:40 DescMain Document Page 12 of 13

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James M Toma [email protected], [email protected]

Gary F Torrell [email protected]

United States Trustee (LA) [email protected]

Cecelia Valentine [email protected]

Jason Wallach [email protected], [email protected]

Kenneth K Wang [email protected], [email protected]; [email protected]; [email protected]

Phillip K Wang [email protected], [email protected]

Sharon Z. Weiss [email protected], [email protected], [email protected]

Adam G Wentland [email protected], [email protected]

Latonia Williams [email protected], [email protected]

Michael S Winsten [email protected]

Rebecca J Winthrop [email protected], [email protected]

Jeffrey C Wisler [email protected], [email protected]

Neal L Wolf [email protected], [email protected]

Claire K Wu [email protected], [email protected]; [email protected]; [email protected]

Steven D Wyllie [email protected]

Hatty K Yip [email protected], [email protected]

Andrew J Ziaja [email protected], [email protected]; [email protected]; [email protected]

Rose Zimmerman [email protected]

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DECLARATION OF DARRELL W. CLARK

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Lawrence J. Hilton, Esq., (SBN 156524) One LLP 4000 MacArthur Blvd., East Tower, Suite 500 Newport Beach, CA 92660 Telephone: (949) 502-2870 Facsimile: (949) 258-5081 Email : [email protected] Darrell W. Clark, Esq. STINSON LLP 1775 Pennsylvania Ave. N.W., Suite 800 Washington, DC 20006-4605 Telephone: (202) 785-9100 Facsimile : (202) 785-9163 Email: [email protected] Attorneys for Cerner Corporation

UNITED STATES BANKRUPTCY COURT

CENTRAL DISTRICT OF CALIFORNIA

LOS ANGELES DIVISION

In re

VERITY HEALTH SYSTEM OF CALIFORNIA, INC., et al.,

Debtors and Debtors in Possession. [X] Affects All Debtors

Affects Verity Health System of California, Inc.

Affects O’Connor Hospital Affects Saint Louise Regional

Hospital Affects St. Francis Medical Center Affects St. Vincent Medical Center

Lead Case No. 2:18-bk-20151-ER Chapter 11 Jointly Administered with: Case No. 2:18-bk-20162-ER Case No. 2:18-bk-20163-ER Case No. 2:18-bk-20164-ER Case No. 2:18-bk-20165-ER Case No. 2:18-bk-20167-ER Case No. 2:18-bk-20168-ER Case No. 2:18-bk-20169-ER Case No. 2:18-bk-20171-ER Case No. 2:18-bk-20172-ER Case No. 2:18-bk-20173-ER Case No. 2:18-bk-20175-ER

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Affects Seton Medical Center Affects O’Connor Hospital

Foundation Affects Saint Louise Regional

Hospital Foundation

Affects St. Francis Medical Center of Lynwood Foundation

Affects St. Vincent Foundation Affects St. Vincent Dialysis Center,

Inc. Affects Seton Medical Center

Foundation Affects Verity Business Services Affects Verity Medical Foundation Affects Verity Holdings, LLC Affects De Paul Ventures, LLC Affects De Paul Ventures – San Jose

Dialysis, LLC

Debtors and Debtors in Possession.

Case No. 2:18-bk-20176-ER Case No. 2:18-bk-20178-ER Case No. 2:18-bk-20179-ER Case No. 2:18-bk-20180-ER Case No. 2:18-bk-20181-ER Hearing: Date: October 7, 2020 Time: 10:00 a.m. Place: 255 E. Temple Street Los Angeles, CA 90012 Courtroom 1568 Judge: Hon. Ernest M. Robles DECLARATION OF DARRELL W. CLARK IN SUPPORT OF LIMITED OBJECTION OF CERNER CORPORATION TO DEBTORS’ NINTH OMNIBUS MOTION TO REJECT, PURSUANT TO 11 U.S.C. § 365(A), CERTAIN TRANSITION EXECUTORY CONTRACTS AND UNEXPIRED LEASES; [DKT. NO. 6037]

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DECLARATION OF DARRELL W. CLARK

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THE UNDERSIGNED, Darrell W. Clark, a partner at Stinson LLP, states as

follows:

1. I am a United States citizen over the age of 18 and competent to testify

to the matters stated below.

2. I am a partner at the law firm of Stinson LLP.

3. I am counsel for Cerner Corporation and its affiliates (collectively

“Cerner”) in connection with the Verity Health System of California, Inc., et al.

Chapter 11 proceedings.

4. Cerner Health Services, Inc. (“Cerner Health”), and Verity Health

System of California, Inc. (“VHS”), are parties to an agreement dated March 27,

2002 as amended (the “Agreement”). The Agreement was originally between

Siemens Medical Solutions USA, Inc., and Verity Health Systems. On February 2,

2015, it was assigned to Cerner Health.

5. Services under the agreement are described as a “Services – Software

Maintenance and Support” and relate to accounts receivable, collection, medical

records and reimbursement management, as well as a laboratory information system.

6. O’Connor Hospital, Sainte Louise Regional Hospital, VHS, Seton

Medical Center, St. Vincent Medical Center, and St. Francis Medical Center are (or

were) all serviced by the Agreement. Although the data is stored separately for each

facility, Cerner’s services are provided to the Debtors under the one agreement.

7. During the course of this Chapter 11 proceeding, services to O’Connor

Hospital and Sainte Louise Regional Hospital were terminated and termination

agreements were executed between the Debtors and Cerner.

8. Cerner continues to supply services to VHS, Seton Medical Center, St.

Vincent Medical Center, and St. Francis Medical Center. As of the date of this

Objection, the Debtors owe Cerner the following post-petition amounts:

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Facility Total Post-Petition Past Due Post-Petition

Seton $18,098.30 $9,049.15

St. Vincent $24,709.04 $12,354.52

St. Francis $19,011.38 $9,505.69

VHS $0.00 $0.00

TOTAL: $61,818.72 $30,909.36

9. The Agreement is non-assignable and is a non-exclusive software

license. Certain portions of the agreement recognize that breach of an intellectual

property license carries certain injunctive relief necessary to preserve Cerner’s rights

as the licensor.

10. Cerner generally does not object to rejection of the Agreement.

11. Cerner does not agree to the use of its license beyond the effective date

of the Plan.

12. Cerner’s concerns relate to the use of its license without payment,

without consent of Cerner, and, potentially, the use of its license by the buyers of the

Debtors’ facilities.

13. In prior cases before this Court, notably Gardens Regional Hospital,

Case No. 16-17463-ER, Cerner’s agreement was rejected. Years later, Cerner

discovered that after confirmation and rejection, its licensed software was

continually used to access health information for submission of claims, production

of documents for defense of the estate, and/or maintenance of records for patients.

No payments were made to Cerner. The plan trustee never sought permission to use

the license and Cerner had taken the debtor on faith that its rejection meant no

further use.

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14. In the St. Michael’s Medical Center case, Case No. 15-24999, Bankr.

D. N.J., the hospital assets were sold to Prime Healthcare (purchaser of the Debtors’

St. Francis Medical Center assets) and a transition of services agreement was

executed between the debtor and the buyers. It took Cerner years to obtain a

consensus on who owed Cerner funds following the sale of the assets to Prime.

15. The issues are beyond monetary. With an obligation to maintain the

software and all of its sublicenses, Cerner is forced to upgrade the licensed solutions

well into the future. Also, in cases were Cerner is remotely hosting a debtor’s

information, Cerner is obligated to maintain that information without a clear

understanding that the health data will be destroyed.

16. For these reasons, Cerner has a deep concern that the instant motion,

seeking to reject, but to maintain use for an orderly wind down, sets Cerner up for

similar treatment.

17. In the Gardens case, when Cerner learned of the unauthorized usage,

Cerner was tasked with seeking payment from the plan trustee well after

confirmation. No one stepped forward to seek permission to use the license or

offered to pay in exchange for using the license. Cerner was forced to police the

fiduciary. The plan trustee had no contractual or legal obligation to pay outside of a

quantum meruit theory or patent infringement. While it was ultimately resolved

with a payment, the procedure described in the Rejection Motion leaves Cerner with

too much uncertainty to simply consent to the relief sought.

18. Here, Cerner has similar concerns about the Debtors’ request to

continue to use the Agreement without a firm termination date and without other

commitments. Those commitments include: (a) an order directing that Cerner’s

post-petition balances are to be paid timely; (b) a legal entity agreeing to be

responsible for the timely payment of all of Cerner’s invoices submitted post-

effective date; (c) some adequate assurance of payment supplied in the form of a

deposit; (d) an agreement to return the licensed software and destroy all copies and

Case 2:18-bk-20151-ER Doc 6103-1 Filed 09/23/20 Entered 09/23/20 16:04:40 Desc Affidavit Declaration of Darrell W. Clark ISO Limited Objection Page 5 of 12

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This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California.

June 2012 F 9013-3.1.PROOF.SERVICE CORE/0011920.0280/161906344.1

PROOF OF SERVICE OF DOCUMENT I am over the age of 18 and not a party to this bankruptcy case or adversary proceeding. My business address is:

One LLP, 4000 MacArthur Boulevard, East Tower, Suite 500, Newport Beach, CA 92660 A true and correct copy of the foregoing document entitled (specify): DECLARATION OF DARRELL W. CLARK IN SUPPORT OF LIMITED OBJECTION OF CERNER CORPORATION TO DEBTORS’ NINTH OMNIBUS MOTION TO REJECT, PURSUANT TO 11 U.S.C. § 365(A), CERTAIN TRANSITION EXECUTORY CONTRACTS AND UNEXPIRED LEASES; [DKT. NO. 6037] will be served or was served in the manner stated below: 1. TO BE SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING (NEF): Pursuant to controlling General Orders and LBR, the foregoing document will be served by the court via NEF and hyperlink to the document. On September 23, 2020, I checked the CM/ECF docket for this bankruptcy case or adversary proceeding and determined that the following persons are on the Electronic Mail Notice List to receive NEF transmission at the email addresses stated below: Service information continued on attached page 2. SERVED BY UNITED STATES MAIL: On September 23, 2020, I served the following persons and/or entities at the last known addresses in this bankruptcy case or adversary proceeding by placing a true and correct copy thereof in a sealed envelope in the United States mail, first class, postage prepaid, and addressed as follows. Listing the judge here constitutes a declaration that mailing to the judge will be completed no later than 24 hours after the document is filed. Service information continued on attached page 3. SERVED BY PERSONAL DELIVERY, OVERNIGHT MAIL, FACSIMILE TRANSMISSION OR EMAIL (state method for each person or entity served): Pursuant to F.R.Civ.P. 5 and/or controlling LBR, on September 23, 2020, I served the following persons and/or entities by personal delivery, overnight mail service, or (for those who consented in writing to such service method), by facsimile transmission and/or email as follows. Listing the judge here constitutes a declaration that personal delivery on, or overnight mail to, the judge will be completed no later than 24 hours after the document is filed. Service information continued on attached page I declare under penalty of perjury under the laws of the United States that the foregoing is true and correct.

September 23, 2020 /s/ Robin Golder Date Printed Name Signature

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TO BE SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING (NEF): Mailing Information for Case 2:18-bk-20151-ER

Alexandra Achamallah [email protected], [email protected]

Melinda Alonzo [email protected]

Robert N Amkraut [email protected]

Kyra E Andrassy [email protected], [email protected]; [email protected]; [email protected]

Simon Aron [email protected]

Lauren T Attard [email protected], [email protected]

Allison R Axenrod [email protected]

Keith Patrick Banner [email protected], [email protected]; [email protected]

Cristina E Bautista [email protected], [email protected]

James Cornell Behrens [email protected], [email protected]; [email protected]; [email protected]; [email protected]; [email protected]

Jacob Beiswenger [email protected], [email protected]; [email protected]

Bruce Bennett [email protected]

Peter J Benvenutti [email protected], [email protected]

Leslie A Berkoff [email protected], [email protected]

Steven M Berman [email protected], [email protected]

Stephen F Biegenzahn [email protected]

Karl E Block [email protected], [email protected]; [email protected]; [email protected]

J Scott Bovitz [email protected]

Dustin P Branch [email protected], [email protected]; [email protected]

Michael D Breslauer [email protected], [email protected]; [email protected]; [email protected]

Chane Buck [email protected]

Lori A Butler [email protected], [email protected]

Howard Camhi [email protected], [email protected]; [email protected]; [email protected]; [email protected]

Barry A Chatz [email protected], [email protected]

Shirley Cho [email protected]

Shawn M Christianson [email protected], [email protected]

Louis J. Cisz [email protected], [email protected]

Leslie A Cohen [email protected], [email protected]; [email protected]

Marcus Colabianchi [email protected]

Kevin Collins [email protected], [email protected]

Joseph Corrigan [email protected]

David N Crapo [email protected], [email protected]

Mariam Danielyan [email protected], [email protected]

Brian L Davidoff [email protected], [email protected]; [email protected]

Aaron Davis [email protected], [email protected]

Lauren A Deeb [email protected], [email protected]

Daniel Denny [email protected]

Kerry L Duffy [email protected], [email protected]

Anthony Dutra [email protected]

Kevin M Eckhardt [email protected], [email protected]

Lei Lei Wang Ekvall [email protected], [email protected]; [email protected]; [email protected]

David K Eldan [email protected], [email protected]

Andy J Epstein [email protected]

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Richard W Esterkin [email protected]

Christine R Etheridge [email protected]

M Douglas Flahaut [email protected]

Michael G Fletcher [email protected], [email protected]

Joseph D Frank [email protected], [email protected]; [email protected]; [email protected]; [email protected]

William B Freeman [email protected], [email protected], [email protected]

Eric J Fromme [email protected], [email protected]

Amir Gamliel [email protected], [email protected]; [email protected]

Jeffrey K Garfinkle [email protected], [email protected]; [email protected]

Thomas M Geher [email protected], [email protected]; [email protected]; [email protected]

Lawrence B Gill [email protected], [email protected] ;[email protected]; [email protected]

Paul R. Glassman [email protected]

Matthew A Gold [email protected]

Eric D Goldberg [email protected], ericgoldberg- [email protected]

Marshall F Goldberg [email protected], [email protected]

Richard H Golubow [email protected], [email protected]; [email protected]; [email protected]

Barry R Gore [email protected], [email protected]; [email protected]

Barbara R Gross [email protected], [email protected]

David M. Guess [email protected]

Anna Gumport [email protected]

Mary H Haas [email protected]

Craig N Haring [email protected]

Melissa T Harris [email protected], [email protected]

James A Hayes [email protected], [email protected]

Michael S Held [email protected]

Lawrence J Hilton [email protected], [email protected], [email protected], [email protected] ,[email protected], [email protected]

Robert M Hirsh [email protected]

Florice Hoffman [email protected], [email protected]

Lee F Hoffman [email protected], [email protected]

Marshall J Hogan [email protected], [email protected]

Michael Hogue [email protected], [email protected]; [email protected]

Matthew B Holbrook [email protected], [email protected]

David I Horowitz [email protected], [email protected]; [email protected]; [email protected]; [email protected]

Virginia Hoyt [email protected]

Brian D Huben [email protected], [email protected]

Joan Huh [email protected]

Carol A Igoe [email protected], [email protected]

Benjamin Ikuta [email protected]

Lawrence A Jacobson [email protected]

John Mark Jennings [email protected], [email protected]

Monique D Jewett-Brewster [email protected], [email protected]

Crystal Johnson [email protected]

Gregory R Jones [email protected], [email protected]

Jeff D Kahane [email protected], [email protected]

Steven J Kahn [email protected]

Cameo M Kaisler [email protected], [email protected]

Ivan L Kallick [email protected], [email protected]

Ori Katz [email protected], [email protected]

Gerald P Kennedy [email protected],

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[email protected]; [email protected]; [email protected]

Payam Khodadadi [email protected], [email protected]

Christian T Kim [email protected], [email protected]

Jane Kim [email protected]

Monica Y Kim [email protected], [email protected]

Benjamin R King [email protected], [email protected]; [email protected]; [email protected]

Gary E Klausner [email protected]

David A Klein [email protected]

Nicholas A Koffroth [email protected], [email protected]

Joseph A Kohanski [email protected], [email protected]; [email protected]

Jolene E Kramer [email protected], [email protected]

David S Kupetz [email protected], [email protected]; [email protected]; [email protected]

Jeffrey S Kwong [email protected], [email protected]

Darryl S Laddin [email protected]

Robert S Lampl [email protected], [email protected]

Richard A Lapping [email protected]

Paul J Laurin [email protected], [email protected]; [email protected]

Nathaniel M Leeds [email protected], [email protected]

David E Lemke [email protected], [email protected]; [email protected]; [email protected]

Lisa Lenherr [email protected], [email protected]

Elan S Levey [email protected], [email protected]

Kerri A Lyman [email protected], #- [email protected]; [email protected]

Tracy L Mainguy [email protected], [email protected]

Samuel R Maizel [email protected], [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]

Lloyd S Mann [email protected]

Alvin Mar [email protected], [email protected]

Craig G Margulies [email protected], [email protected]; [email protected]; [email protected]

Kevin Meek [email protected], [email protected]; [email protected]

Hutchison B Meltzer [email protected], [email protected]

Christopher Minier [email protected], [email protected]

John A Moe [email protected], [email protected]

Susan I Montgomery [email protected], [email protected]; [email protected]; [email protected]

Monserrat Morales [email protected], [email protected]; [email protected]; [email protected]

Kevin H Morse [email protected], [email protected]

Marianne S Mortimer [email protected]

Tania M Moyron [email protected], [email protected]; [email protected]; [email protected]; [email protected];[email protected]; [email protected]; [email protected]

Alan I Nahmias [email protected], [email protected]

Akop J Nalbandyan [email protected], [email protected]

Jennifer L Nassiri [email protected]

Charles E Nelson [email protected], [email protected]

Sheila Gropper Nelson [email protected]

Mark A Neubauer [email protected], [email protected]; [email protected]; [email protected]

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Fred Neufeld [email protected], [email protected]

Bryan L Ngo [email protected], [email protected]; [email protected]; [email protected]; [email protected]

Abigail V O’Brient [email protected], [email protected]; [email protected]; [email protected]; [email protected]

John R OKeefe [email protected], [email protected]

Matthew J Olson [email protected], [email protected]

Scott H Olson [email protected], [email protected], [email protected], [email protected]

Giovanni Orantes [email protected], [email protected], [email protected], [email protected], [email protected]; [email protected]

Keith C Owens [email protected], [email protected]

R Gibson Pagter [email protected], [email protected]; [email protected]

Paul J Pascuzzi [email protected], [email protected]

Lisa M Peters [email protected], [email protected]

Christopher J Petersen [email protected], [email protected]

Mark D Plevin [email protected], [email protected]

Steven G. Polard [email protected], [email protected]; [email protected]; [email protected]

David M Powlen [email protected], [email protected]

Christopher E Prince [email protected], [email protected]; [email protected]

Lori L Purkey [email protected]

William M Rathbone [email protected], [email protected]; [email protected]

Jason M Reed [email protected]

Jeffrey M. Reisner [email protected], #[email protected]; [email protected]; [email protected]

Michael B Reynolds [email protected], [email protected]

J. Alexandra Rhim [email protected]

Emily P Rich [email protected], [email protected]

Robert A Rich , [email protected]

Lesley A Riis [email protected]

Debra Riley [email protected]

Jason E Rios [email protected], [email protected]

Julie H Rome-Banks [email protected]

Mary H Rose [email protected]

Douglas B Rosner [email protected]

Gregory A Rougeau [email protected]

Megan A Rowe [email protected], [email protected]

Gregory M Salvato [email protected], [email protected]; [email protected]; [email protected]

Nathan A Schultz [email protected]

Mark A Serlin [email protected], [email protected]

Seth B Shapiro [email protected]

David B Shemano [email protected]

Joseph Shickich [email protected]

Mark Shinderman [email protected], [email protected];[email protected]

Kyrsten Skogstad [email protected], [email protected]

Michael St James [email protected]

Joseph L Steinfeld [email protected], [email protected]; [email protected]; [email protected]; [email protected]

Andrew Still [email protected], [email protected]

Jason D Strabo [email protected], [email protected]

Sabrina L Streusand [email protected]

Ralph J Swanson [email protected], [email protected]

Michael A Sweet [email protected], [email protected]; [email protected]

Case 2:18-bk-20151-ER Doc 6103-1 Filed 09/23/20 Entered 09/23/20 16:04:40 Desc Affidavit Declaration of Darrell W. Clark ISO Limited Objection Page 11 of 12

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This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California.

June 2012 F 9013-3.1.PROOF.SERVICE CORE/0011920.0280/161906344.1

James M Toma [email protected], [email protected]

Gary F Torrell [email protected]

United States Trustee (LA) [email protected]

Cecelia Valentine [email protected]

Jason Wallach [email protected], [email protected]

Kenneth K Wang [email protected], [email protected]; [email protected]; [email protected]

Phillip K Wang [email protected], [email protected]

Sharon Z. Weiss [email protected], [email protected], [email protected]

Adam G Wentland [email protected], [email protected]

Latonia Williams [email protected], [email protected]

Michael S Winsten [email protected]

Rebecca J Winthrop [email protected], [email protected]

Jeffrey C Wisler [email protected], [email protected]

Neal L Wolf [email protected], [email protected]

Claire K Wu [email protected], [email protected]; [email protected]; [email protected]

Steven D Wyllie [email protected]

Hatty K Yip [email protected], [email protected]

Andrew J Ziaja [email protected], [email protected]; [email protected]; [email protected]

Rose Zimmerman [email protected]

Case 2:18-bk-20151-ER Doc 6103-1 Filed 09/23/20 Entered 09/23/20 16:04:40 Desc Affidavit Declaration of Darrell W. Clark ISO Limited Objection Page 12 of 12