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March 25, 2008 |
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TRIGEM COMPUTER: Seeks Court Approval of Toshiba Settlement Il-Hwan Park, foreign representative for TriGem Computer, Inc., asks the U.S. Bankruptcy Court for the Central District of California, Los Angeles Division, to approve a settlement agreement TriGem entered with Toshiba Corporation. TriGem commenced an adversary proceeding to permanently enjoin the continuation of a prepetition lawsuit initiated by Toshiba, David Packard and John E. Hock against TriGem in the U.S. District Court for the Central District of California; or in the alternative, allow the TriGem case under Chapter 15 of the Bankruptcy Code to remain open in perpetuity so the automatic stay will continue and obviate the need to enjoin the continuation of the Toshiba Lawsuit. Toshiba and Messrs. Packard and Hock sued TriGem in the California District Court for alleged infringement of several Toshiba Patents. The salient terms of the Settlement are: (a) The Adversary Proceeding will be dismissed with prejudice solely against Toshiba, with each party bearing its own costs. (b) Toshiba will forever refrain from initiating, filing, instituting, maintaining or continuing any claim against TriGem arising from or relating to the infringement of the five Toshiba U.S. Patents related to sales of desktop computers by TriGem prior to June 16, 2005. The five Toshiba U.S. Patents are: * Patent No. 6,230,209; * Patent No. 6,128,015; * Patent No. 5,475,762; * Patent No. 5,430,867; and * Patent No. 6,463,396. (c) TriGem and Toshiba will stipulate to dismiss without prejudice the prepetition plenary lawsuit filed by Toshiba in the U.S. District Court for the Central District of California, with each party bearing its own costs. The Settlement does not affect the Adversary Proceeding as against David Packard and John E. Hock. Charles D. Axelrod, Esq., at Stutman Treister & Glatt PC, in Los Angeles, California, asserts that the Settlement is fair and reasonable and achieves the goal of the Adversary Proceeding in all material respects. The Settlement, he adds, is the product of good faith and arm's-length negotiations between TriGem and Toshiba. It takes into account the potential concerns raised by Toshiba, with respect to potentially unfair, unintended, and unnecessary consequences it might experience if the permanent injunction, rather than the "covenant not to sue" procedure, was followed. Mr. Axelrod avers that additional litigation fees and costs that could be relatively significant are avoided by the Settlement. If the Bankruptcy Court does not approve the Toshiba Settlement, TriGem said it intends to pursue its summary judgment request against Toshiba. TriGem informs the Bankruptcy Court that it is ready for trial in relation to the Adversary Proceeding, and that no discovery is needed to prepare for that trial. TriGem, however, said that it has not engaged in formal mediation with Toshiba because of the Settlement. TriGem noted that it would take it more than half a day to present its case. TriGem intends to call on at least five witnesses and present 10 exhibits during the trial. TriGem Agrees to Extend Response Deadline In separate Bankruptcy Court-approved stipulations, TriGem agreed to extend the deadline for Toshiba, if the Settlement is not approved, and Messrs. Packard and Hock to respond to the Complaint until April 4, 2008. To note, TriGem previously asked the Bankruptcy Court in February 2008 to enforce a default judgment on Messrs. Packard and Hock because they have not filed any response to the Adversary Proceeding. In response, Messrs. Packard and Hock told the Bankruptcy Court that TriGem improperly served the Complaint and summonses, which resulted to them not receiving the documents on time. Toshiba is represented by Evan Finkel, Esq., at Pillsbury Winthrop Shaw Pittman LLP, in Los Angeles, California. Messrs. Packard and Hock are represented by Thomas H. Prouty, Esq., at Ross, Dixon & Bell, LLP, in Irvine, California. About TriGem Computer Headquartered in Ansan City, Kyunggi-Do, Korea, TriGem Computer Inc. -- http://www.trigem.com/ -- manufactures desktop PCs, notebook PCs, LCD monitors, printers, scanners, other computer peripherals, and PIDs and supplies over four million PCs a year to clients all over the world. Il-Hwan Park, the Foreign Representative, filed a chapter 15 petition on Nov. 3, 2005 (Bankr. C.D. Calif. Case No. 05-50052). Charles D. Axelrod, Esq., at Stutman Treister & Glatt, P.C., represents the Foreign Representative in the United States. TriGem America Corporation, an affiliate of the Debtor, filed for chapter 11 protection on June 3, 2005 (Bankr. C.D. Calif. Case No. 05-13972). TriGem Texas, Inc., another affiliate of the Debtor, also filed for chapter 11 protection on June 8, 2005 (Bankr. C.D. Calif. Case No. 05-14047). On Sept. 13, 2007, TriGem filed Draft Plan Amendments in Korea and on September 20 filed a Final Plan Amendment. The Korean Court confirmed Trigem's Amended Plan on Oct. 4, 2007. (TriGem Bankruptcy News, Issue No. 14 Bankruptcy Creditors' Service, Inc., 215/945-7000). |
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