GE, Orbotech dispute referred to arbitration

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Disputes between Orbotech and GE heat up. Image Source: University of Colorado  

GE Healthcare and its division GE Healthcare Systems Israel (GEMSI) notified flat-panel display component manufacturer Orbotech that it is referring a dispute with that company and its subsidiary, Orbotech Medical Solutions (OMS), to arbitration in Israel.

The Yavne, Israel-based Orbotech said that the dispute relates, among other things, to a claim by GEMSI that OMS has an obligation to supply it with cadmium zinc telluride (CZT) modules at a specific price per module. OMS said it is under no obligation to supply the modules.

The proceeding is at an early stage, an arbitrator has yet to be appointed, and Orbotech said it has not yet received a statement of claim. Based on the information currently available, the company said that they “have good defenses against any such claim, which they intend to defend vigorously.”

In addition, a separate dispute which is not under the agreement is currently the subject of litigation between Orbotech and GE in the U.S. District Court for the Central District of California.
On Nov. 4, GE filed a complaint against Orbotech claiming breach of contract and requesting specific performance, injunctive relief, declaratory relief and damages. At that time, GE also filed a motion for a preliminary injunction.

The dispute at issue in that matter relates to GE's claim that OMS has an obligation to supply GEMSI with 850 CZT modules. This suit also is in preliminary stages and Orbotech said it will file a motion to dismiss GE's complaint for lack of personal jurisdiction, improper service and inconvenient forum, and to continue GE's motion for a preliminary injunction until after the court's ruling on Orbotech’s motion to dismiss.