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 30 1992 Date: Tue, 30 Jun 92 05:22:40 EDT Message-ID: 06-30 0000 DECISIONLINE: Business Law USA TODAY Update June 30, 1992 Source: USA TODAY:Gannett National Information Network AIRLINES DON'T ACT ON RUMORS: A three-way merger in the airline industry was rumored Monday, but no action resulted. But after the two worst years ever for the airline industry, a deal between TWA, USAir and British Airways was not off the mark. The Wall Street Journal reported Monday that USAir was negotiating to buy most of TWA's assets and British Airways was considering buying 49% of the expanded USAir. COMBINATION LOOKS LUCRATIVE: TWA Chairman Carl Icahn confirmed talks with USAir, but said no deal has been made for a three-way combination to also include British Airways. But it looks lucrative: TWA is in bankruptcy reorganization; USAir could use TWA's international routes; and British Airways wants a strong U.S. partner. Obstacles include approval by the bankruptcy court in relation to TWA's assets. PROPERTY OWNERS MUST BE PAID: In a case involving a South Carolina developer, the Supreme Court ruled Monday that property owners deserve to be paid when zoning and environmental regulations leave them without any use for their land. In the case, developer David Lucas was not allowed to build on coastal property he bought for $1 million due to zoning laws that were passed soon after his purchase. LAW FIRMS EARN $13.9 MILLION: While U.S. law firms pulled in a record $13.9 billion last year, the revenue increase is not as great as in past years. The recession took its toll on law firms, as did clients' desire for cost containment, according to a report by The American Lawyer magazine. Manhattan-based Skadden, Arps, Slate, Meagher & Flom had the highest revenues, just under a half-billion dollars. THREE SETTLE WITH SEC: Without admitting or denying guilt, three people reached a settlement with the Securities and Exchange Commission over charges of insider trading. The SEC charged that John Decker, the former president and CEO of Pannill Knitting Co. Inc., told friends about a offer for Panill by Sara Lee Corp. Friends Benjamin Cooper and Thomas Smith were also named in the charges. CORPORATIONS CLEANING UP: As a result of reports of toxic spills, Clean Water Act violations and other pollutions, corporate America is involved in environmental cleanup. Pressure from investors has motivated companies in the Standard & Poor's 500 to report their pollution to the government and devote time and money to repair the damage, said a study by the Investor Responsibility Research Center. WISCONSIN BLOCKS MORE GAMBLING: Wisconsin Gov. Tommy Thompson has called a special legislative session for Tuesday to amend the state constitution and prevent the spread of new forms of wagering. Wisconsin was under pressure to expand gambling with riverboats, slot machines and other activities. The state stopped the spread quickly, and while allowing established gambling to continue, is blocking new arenas. COURT AFFIRMS PENALTY: A federal appeals court Monday affirmed a $4 million civil penalty the Federal Trade Commission imposed on Louisiana-Pacific Corp. for failing to comply with an order to divest its interest in a fiberboard plant it acquired in 1978. The Court of Appeals for the Ninth Circuit ruled last week that the penalty was appropriate. Louisiana-Pacific agreed to settle charges by selling the plant. MORE GAS HEADED TO N.Y.: Canada's National Energy Board has reversed a previous decision that would have stemmed the delivery of natural gas to New York by approving the Blackhorse Pipeline extension. TransCanada PipeLines Ltd. plans to spend about $33.4 million on the link in southern Ontario, which will connect with the Empire State Pipeline. FDIC MAY NEED MORE ASSISTANCE: A General Accounting Office report out Tuesday says the Federal Deposit Insurance Corp. may need more government help next year despite a $30 billion taxpayer loan. It is feared the industry-financed Savings Associations Insurance Fund, due to take over responsibility of failed thrifts from the government next year, may need to borrow from the FDIC's $30 billion line of credit. SPIEGEL PLEADS INNOCENT: Thomas Spiegel, former head of Columbia Savings & Loan, pleaded innocent to charges that he financed a jet-set lifestyle with money from the Beverly Hills, Calif., thrift. Spiegel was indicted last week on 55 counts of misappropriating funds for his own use. If convicted, Spiegel faces up to 275 years in prison and a $13 million fine. He's scheduled to be tried in federal court Aug. 25. CONDITIONAL BILL OPPOSED: The Bush administration Monday opposed a bill attaching conditions to the renewal of China's favorable trade status with Washington. The measure targets only Chinese state-owned industries for sanctions if Beijing doesn't meet fair conditions for human rights, weapons transfers and trade practices. The administration considers the bill bad policy and unworkable. STEELWORKERS BACK TO WORK: After settling a 20-month labor dispute Monday, United Steelworkers returned to work at Ravenswood Aluminum Corp. in Ravenswood, W.Va. "It is definitely a victory for unions everywhere," said Luther Weatherholt, a plumber who watched his father march back into the plant. Business Law Editor: Kate Coughlin. (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