Manalis Finance Co. v. United States

MEMORANDUM

This action came on for trial upon stipulated facts before the Honorable Wm. Matthew Byrne, Jr. The Court has considered the stipulated facts and exhibits, the pleadings and other papers submitted by counsel, and counsels’ presentations at trial. This memorandum of decision incorporates the stipulated facts and exhibits filed in this action, and shall constitute the Findings of Fact and Conclusions of Law as permitted under Rule 52(a), Federal Rules of Civil Procedure.

SUMMARY OF FACTS

The facts giving rise to this litigation involve four entities. GAB Corporation, doing business as Manchester Community Hospital (“GAB Hospital”), not a party, was a provider of medical services during the time period relevant to this litigation, and was entitled to receive payments from the state of California under the “Medi-Cal” program. Blue Shield, also not a party, acted for the state in making Medi-Cal payments- to providers, and was responsible for making the payments to GAB Hospital.

In order to finance its hospital operations, GAB Hospital entered into a factoring agreement with plaintiff Manalis Finance Co. (“Manalis”) under which Manalis would lend money to GAB Hospital,…