After three long months in the courtroom, a trial in which a
local company is suing General Electric (GE) for $12.8 million in
lost profits went to a jury last week. Since May, Vitascan – a
Santa Barbara-based mobile body scanning business – and GE
Healthcare – who leased Vitascan the portable scanners – battled
over why the company failed in 2003 after just two years of
business. GE argues Vitascan owes them more than $4 million in
unpaid lease payments for the scanners, while the plaintiffs’
attorney Peter Bezek says they contained a design flaw that
destroyed the company. In closing arguments, GE attorney Dennis
Ellis dramatically outlined a string of bad business decisions made
by Vitascan owners James Gerlach and Dan Parker, claiming they cut
corners and chose higher profits over good healthcare. Bezek
countered that GE misled Vitascan, chose profit over integrity, and
refused to take responsibility for the faulty scanners. It’s up to
the jury to determine the fate of the millions of dollars on the
line.
