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 Thu, Jun 25 1992 Date: Thu, 25 Jun 92 05:35:29 EDT Message-ID: 06-25 0000 DECISIONLINE: Business Law USA TODAY Update June 25, 1992 Source: USA TODAY:Gannett National Information Network COURT ALLOWS CIGARETTE SUITS: A Supreme Court ruling Wednesday clears the way for a new wave of lawsuits against cigarette makers for smoking-related death and illness. Under the 7-2 decision, victims' suits for the first time will be able to claim in state court that manufacturers used fraud and deception in marketing cigarettes as safe. But the court also foreclosed other types of lawsuits against tobacco companies. (For more, see special Ruling package below.) CONGRESS HESITATES TO ACT: The Bush Administration Wednesday called for Congress to step in and end a strike that caused the nation's rail system to come to a virtual halt. "We're in a state of crisis," Transportation Secretary Andrew Card told a House panel. But Congress hesitated to get involved in the machinist's union strike against CSX Transportation. Contract negotiations continued in Washington. STRIKE STOPS RAIL INDUSTRY: Freight traffic ground to a halt Wednesday and passenger service was severely limited due to a strike by one union. Freight carriers shut down after the machinist's union struck CSX. Amtrak trains ran between Boston and Washington, but not elsewhere, stranding travelers in the South and California. Also, Chrysler and General Motors said they would have to cut production soon. JUDGE RULES AGAINST CHANNEL ONE: New Jersey administrative law judge Bruce R. Campbell Wednesday ruled that classroom news program Channel One violates the state constitution. He ruled in a lawsuit brought by a teachers' union that the TV show, which contains commercials, violates the constitutional mandate for a "thorough and efficient system of free public schools." ITC DOES NOT FIND DUMPING: The International Trade Commission Wednesday ruled the Big Three U.S. automakers have not been hurt by sales of Japanese minivans. The Big Three charged Japanese automakers were "dumping" minivans in the USA in 1990 and 1991 at unfairly low prices. The ruling means Toyota and Mazda will avoid tariffs that could have added hundreds of dollars to the price of their minivans. ANTAR ARRESTED IN ISRAEL: The fugitive head of defunct electronic store chain "Crazy Eddie," Eddie Antar, was arrested Wednesday in Israel after eluding police for two years. Antar and his brothers Mitchell and Allen and their cousin Eddie Gindi, have been indicted on 18 counts of securities fraud, mail fraud and conspiracy to commit securities fraud. They are accused of inflating the value of the chain. SCHERING SUES GENENTECH: Schering Corp. has filed suit against Genentech, Inc., it was announced Wednesday. The suit seeks a judgment declaring a Genentech patent is invalid and unenforceable; is not infringed by Schering's manufacture, use and sale of recombinant alpha interferon; and that Schering is licensed under the patent. GAMING LICENSE GRANTED: Wednesday, the state of Mississippi granted a gaming license to Mississippi Riverboat Amusement Ltd. Voters in Harrison County last March voted to approve gaming. The firm is planning to open a riverboat gambling operation in Biloxi later this summer. SHONEY'S CLASS LIMITED: U.S. District Court Judge Roger Vinson of the Northern District of Florida has limited the class in a racial discrimination suit against Shoney's Inc., the company said Wednesday. The class is limited to black workers employed by company-owned Shoney's and Captain D.'s restaurants between Feb. 4, 1988, and April 19, 1991. The class was also limited to store-level employees. SPECIAL PACKAGE ON RULING: REACTIONS MIXED: Reactions to the Supreme Court's ruling allowing cigarette makers to be sued in state courts prompted claims of victory for both sides. Industry analyst John Maxwell Jr. called the ruling "a significant victory for the tobacco industry." But anti-smoking lawyers say the ruling will encourage thousands more lawsuits that will uncover evidence of tobacco company fraud. COURT RULES FOR FAMILY: The Supreme Court's cigarette ruling Wednesday is a victory for the family of Rose Cipollone, 58, of New Jersey, who died of lung cancer in 1984 after 42 years of smoking. The case goes back for a new trial in New Jersey. But legal experts say lawsuits will remain hard to win against tobacco companies. Jurors will still have to be convinced that the industry is responsible for smokers' habit. INDUSTRY NOT PHASED: The Supreme Court ruling has not phased the tobacco industry. Philip Morris, the world's largest cigarette marketer, called the court's decision "a significant victory." R.J. Reynolds pronounced itself "very pleased." Wall Street analysts said the decision will curtail lawsuits by smokers. Tobacco stocks staged a late rally on Wall Street. (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