Court Ruling Allows Freeland Systems to Foreclose on Assets of Kardia Health Systems

Based on judge's ruling Freeland Systems reclaims assets and will re-enter the medical diagnostic image management, reporting and archiving marketplace with the release of new AccessPoint technology.

Venice, FL, February 17, 2010 --( On February 12, 2010, U.S. District Court Judge Patrick J. Schiltz denied a request made by Kardia Health Systems to enjoin Freeland Systems, LLC from conducting a public foreclosure sale of certain assets previously sold by Freeland Systems to Kardia Health Systems. (Case 0:09-cv-02767-PJS-AJB Document 88 Filed 02/12/10)

Since May 2008, AccessPoint™ solutions have been marketed by Kardia Health Systems under the AccessPoint™ and Connected Care trade names. The Court’s Order will permit Freeland Systems to resume its efforts to foreclose its security interest in certain assets of Kardia. These assets include certain AccessPoint™ technology, copyrights, customer lists, trade names, and associated logos. Because of Kardia’s alleged default in payment, due under a promissory note dated May 8, 2008, Freeland Systems’s current intent is to hold a public foreclosure sale within the next several weeks, and to bid upon these assets and to once again market AccessPoint™ products and support AccessPoint™ customers.

Judge Schiltz’s ruling also found that a fraud case filed by Kardia Health Systems against Freeland Systems in September 2009 was “tenuous” and that it was “highly unlikely that Kardia will succeed on the merits of its claim for fraudulent inducement.” According to the Ruling “The Court discussed the weaknesses of Kardia’s fraud claim at length during the February 2, 2010 hearing.”

According to Managing Partner John Freeland, “the ruling, which is posted at, strengthens Freeland’s claims of alleged breach of contract previously filed against Kardia Health Systems. Additionally, it leaves Kardia with a weak defense for payment of an alleged outstanding promissory note to Freeland Systems which totals over $6 million dollars. Freeland will continue to pursue collection of its $6 million dollars as well as its numerous claims against Kardia.”

Freeland plans to re-enter the medical diagnostic image management, reporting and archiving marketplace with a new release of the AccessPoint™ technology, as well as with most of the original Freeland Systems management, development, customer and technical support, and sales staff. The new software will offer features specifically designed to address the needs of cardiology practices that have not yet upgraded to digital technology.

About Freeland Systems, LLC

Headquarted in Venice, Fla. with operations in Denver, Colorado, Freeland Systems, LLC has a 30-year history of providing image management technology to the health care industry. The company developed the proprietary line of AccessPoint technology that includes structured reporting, viewing and archiving. AccessPoint’s focus on value pricing and clinical efficiencies make the technology particularly attractive to smaller cardiology practices.

Freeland Systems
John Freeland