Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.law From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: law Tue, Jun 23 1992 Date: Tue, 23 Jun 92 05:14:12 EDT Message-ID: 06-23 0000 DECISIONLINE: Business Law USA TODAY Update June 23, 1992 Source: USA TODAY:Gannett National Information Network AIRLINES TO PAY $412.5 MILLION: American, United, Delta and USAir agreed Monday to pay $412.5 million to settle a price-fixing class-action lawsuit. The airlines deny wrongdoing, but said they agreed to settle to avoid the costs associated with a lengthy court battle. As many as 10 million fliers could be eligible to receive $368.5 million in discount certificates good for domestic travel, as part of the settlement. RAIL STRIKE NEARS: A strike that would cripple the nation's rail industry appears imminent. A spokesman for Amtrak said Monday that progress in contract talks with 8,000 workers has been made, but not enough to avoid a strike set for 12:01 a.m. Wednesday. In addition to the Amtrak workers, 3,500 Conrail trackmen and 8,000 machinists are set to walk off their jobs in a dispute over salary and work rules. SEARS ANNOUNCES CHANGES: Sears Roebuck Monday announced changes in its auto-service business that it hopes will solve problems that have led California and New Jersey to accuse it of bilking customers. Among the changes: Sears said it will stop paying commissions to auto-repair workers in an effort to remove the incentive to sell unneeded parts and services to customers. (For more, see special Sears package below.) COURT WILL NOT REVIEW CASE: A ruling Monday by the Supreme Court means Citibank, the largest bank in the USA, can be held liable for deposits frozen by the Phillipine government in 1983. The justices decided not to review whether U.S. banks can be held liable for deposits in foreign branches when a foreign government freezes the assets. BENEFITS CASE TO BE HEARD: A New York City multiemployer benefits case will be heard by the Supreme Court, the justices said Monday. The court agreed to rule on whether multiemployer benefit plans are required to transfer money to new funds set up by employers who pull out. Federal appeals courts have come to conflicting decisions on whether labor law requires such transfers. NEW BID FOR UPI SURFACES: A competing bid for United Press International has emerged. Dennis O'Dea, a lawyer for UPI's creditors, will ask a bankruptcy court judge Tuesday to accept a bid of $3.5 million from a group of Middle East investors over one from lawyer Leon Charney. Charney is offering creditors $600,000 cash, a 40% stake in the wire service and up to $9 million of the $12.5 million UPI is owed by customers. RIVAL GROUPS BIDDING FOR UPI: A battle is brewing over who will buy United Press International. Dennis O'Dea, a lawyer for UPI's creditors, said Monday the creditors committee prefers a $3.5 million all-cash bid from Middle East Broadcasting Center. Also on the table is a bid from lawyer Leon Charney. Monday he said UPI "is an American press service, and we believe it should be held by Americans." ARCHIVE, REXON SETTLE SUIT: Archive Corp. Monday reported settlement of a patent infringement lawsuit brought against Rexon Corp. in September, 1991. As part of the settlement, Archive and Rexon have entered into a long-term, non-exclusive patent cross-license. Rexon will receive a fully paid-up license under an earlier license royalty obligation. Other terms of the settlement were not disclosed. SUITS PILING UP: The clerk's office at the U.S. District Court for the Eastern District of New York says new cumulative stress disorder suits are being filed at a steady clip. The total number of plaintiffs is more than 100. Defendants most frequently named in the suits are International Business Machines, Apple, Wang Laboratories, Eastman Kodak and its subsidiary Atex, Inc., and NCR Corp. JUDGE ASKED TO THROW OUT PACT: LTV Corp. Monday asked U.S. Bankruptcy Court Judge Burton Lifland to throw out a contract between its steel unit and the United Steelworkers of America union. The company said it is frustrated by a lack of progress in talks aimed at altering labor agreements, reports Bloomberg Business News. the union called the action an official declaration of war and threatened to strike. SPECIAL PACKAGE ON SEARS: BRENNAN DETAILS CHANGES: Sears Roebuck Chairman Edward Brennan Monday announced changes in the company's auto-repair business following charges that customers were being cheated. Among changes: Sears will eliminate goals that require auto shops to sell certain quantities of parts, hire an outside firm to conduct unnannounced shopping audits, and promote a panel to evaluate standards in the industry. FLORIDA SUBPEONAS SEARS: Florida has become the third state to investigate or charge Sears auto centers with fraudulent practices. Sears said Monday it will comply with a subpeona of its auto shop records by Florida. California and New Jersey have charged that the shops have cheated customers. SEARS DENIES ALLEGATIONS: Though Sears Chairman Edward Brennan admitted Monday at a press conference that "Mistakes did occur," at the company's auto-repair shops, Sears continues to deny allegations of fraud. "The policies for compensation and goal-setting, created by management for our service advisers in the auto centers, were mistakes. And, when I refer to management, the buck stops with me," he said. (End of package.) Business Law Editor: Jason P. Smith. (919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM