Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.law,americast.usa-today.law From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: law Wed, Sep 9 1992 Date: Wed, 9 Sep 92 04:29:47 EDT Message-ID: 09-09 0000 DECISIONLINE: Business Law USA TODAY Update Sept. 9, 1992 Source: USA TODAY:Gannett National Information Network FINES, SENTENCES TOSSED OUT: A federal judge on Tuesday threw out fines and prison sentences for defendants convicted in a 1980s tax fraud case. The fines of $155,000 and prison sentences of three months had been imposed on Bruce Newberg - who worked with imprisoned junk-bond financier Michael Milken - and Charles Zarzecki. Zarzecki was formerly a partner at Princeton:Newport Partners investment firm. NORTHWEST MAY APPEAL DECISION: Northwest Airlines said Tuesday it might appeal a ruling ousting some of its lawyers from its antitrust suit against American Airlines. A three-judge panel said late last week that the Houston firm of Vinson & Elkins could not represent Northwest in the case because legal work it has done for American gave it access to information that could aid Northwest's case. COURT REVERSES CIGARETTE RULING: The Third Circuit Court of Appeals Tuesday overturned a February decision convicting U.S. cigarette makers of engaging in fraud by not making public its research on smoking and health. A panel said the tobacco industry had not been given the chance to present its case. It also said the decision was "based on improper consideration of evidence." ORION DISCLOSURE IS APPROVED: A federal bankruptcy judge Tuesday approved Orion Pictures Corp.'s disclosure statement. That approval removes one of the last obstacles keeping the moviemaker from emerging from bankruptcy. U.S. Bankruptcy Judge Burton Lifland dismissed creditors' objections to Orion's disclosure statement, which lays the financial framework for the company's reorganization plan. APACHE TO APPEAL $4.5M AWARD: Apache Corp. said Tuesday it will ask for a reduction in the $4.5 million punitive damages awarded for a 1981 natural gas well blowout. The award is thought to be the largest ever in Texas. A jury awarded $4.5 million to eight plaintiffs. They can collect punitive damages and $81,000 in actual damages, but no interest; or $191,000 plus interest, but no punitive damages. OWNERS SUED OVER BLOWOUT: Apache Corp., which is appealing a punitive-damages award of $4.5 million in a natural gas well blowout, was sued by royalty owners on nearby land who claimed they suffered sizeable gas losses as a result. The well was returned to production about 18 months after the blowout and still is producing, said Apache spokeswoman Jeanne Buchanan. SETTLEMENT INCORRECTLY REPORTED: Star Enterprise:Texaco said Tuesday a settlement Friday in Fairfax, Va., has been incorrectly reported. The company said the reported $150 million settlement was incorrect. The company said the cost of the property protection part of the settlement will be determined over 10 years and could range from no cost to a fraction of $150 million. TAX COMPLAINTS NOT TOLERATED: Judges of the U.S. Tax Court are becoming increasingly impatient with taxpayers claiming federal income tax is illegal. Plaintiffs are being fined up to $25,000 plus payment of the taxes in question - and penalties - to the Internal Revenue Service. The Rocky Mountain area and Southwestern states seem to generate the greatest share. One American-born couple said they were not U.S. citizens. TAXPAYERS KEEP TRYING: Despite increased penalties for frivolousness and decisions by appeals courts over the past decade, taxpayers continue to try avoiding tax payments. Attempts include citing such documents as the Magna Carta and the Mayflower Compact to show income tax is illegal. COURT LACKED JURISDICTION: The Fifth Circuit Court of Appeals has ruled that the federal district court in Midland, Texas, did not have the jurisdiction for a trial on state law claims. That trial resulted in a $175 million judgment, mostly in favor of non-publicly traded partnerships managed by Parker & Parsley Petroleum Inc. The judgment was against Baker Hughes, Dresser Industries and BJ Services Co. DRUG SEARCH SYSTEM IS APPROVED: The Food and Drug Administration has approved a new system by American Science & Engineering for searching people for drugs, the company said at its annual meeting in Cambridge, Mass., Tuesday. That approval means the company may sell Bodysearch I. It's an X-ray security system that could replace regular strip searches, the company said. LEASE AGREEMENT IS ANNOUNCED: Technigen Corp. Tuesday announced a lease agreement with Merv Griffin's Resorts Casino Hotel for the opening of Technigen's first Joytec Indoor Golf Center at the Atlantic City, N.J., hotel. Resorts Casino will receive 20% of the gross revenues and Technigen will receive the net-income balance. Business Law Editor: Beth Mann. (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