SQLState: S0001, Message: The server failed to resume the transaction. Desc:3600000000

Problem Description:
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When web based java application is connecting to SQL server 2005 backend through JDBC, they are getting error message
SQLState: S0001, Message: The server failed to resume the transaction. Desc:3600000000., Vendor Error Code: 3971

Cause:
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Here are the scenarios that you might get this error message (“failed to resume the transaction”):
• A nested stored procedure is called
• Stored procedure returns output parameters
• A deadlock occurs. After waiting, the stored procedure is executed again and receives "failed to resume transaction"

Workaround/Resolution:
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Here is some of the work around being prescribed since we have started seeing the issue:
1) Use PreparedStatement in lieu of Statement. This ensures that outstanding TDS packets are parsed when close() is called.
2) Call Statement.getMoreResults() and Statement.getUpdateCount() until those functions indicate there are no more results to be processed. This ensures that all outstanding TDS packets are parsed.