By Justine Griffin for the Tampa Bay Times
TAMPA — The Laser Spine Institute may have closed its doors suddenly in March, but repercussions from the surgery center’s business practices continue to reverberate in the courts.
Two local lawsuits provide the clearest picture yet of the forces that led the Tampa company to shut down, resulting in the loss of some 500 jobs. Documents detail a years-long legal battle among three business partners, a penchant for paying large executive salaries and bonuses, and a struggle against mounting debt.
Another factor: ego. At one point, two of the founders dared their partner to sue them, telling him the company was making so much money it wouldn’t matter. When the partner called their bluff, his lawsuit ended up being a decisive blow that helped put Laser Spine in the grave.
That case came to a head June 30, when a judge in Hillsborough County Circuit Court awarded Joe Samuel Bailey $260 million in damages, capping what had been a 13-year battle between Bailey and Laser Spine founders, Dr. James St. Louis and Dr. Michael Perry.
Bailey accused them of breach of fiduciary duty, defamation, slander, violation of the Florida Deceptive and Unfair Trade Practices Act, conspiracy and tortious interference.
Following two long bench trials and appeals, he now assumes a majority share in the remains of Laser Spine, which is undergoing an insolvency process. Similar to a federal bankruptcy filing, the process assesses all equipment and other materials Laser Spine owned or controlled and decides what is valuable enough to sell.