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 Tue, Sep 22 1992 Date: Tue, 22 Sep 92 04:55:02 EDT Message-ID: 09-22 0000 DECISIONLINE: Business Law USA TODAY Update Sept. 22, 1992 Source: USA TODAY:Gannett National Information Network NBA LOSES STAGE OF LAWSUIT: Independent Entertainment Group Inc. said Monday that it has won the first stage of an antitrust lawsuit against the National Basketball Association. The NBA is refusing to let Magic Johnson, formerly of the Los Angeles Lakes, and Michael Jordan, of the Chicago Bulls, participate in a pay-per-view event the entertainment group is sponsoring. LABOR DEFENSE IS NOT ALLOWED: Independent Entertainment Group on Monday won the first part of its lawsuit against the National Basketball Association when a federal district court would not let the NBA use a defense based on its labor exemption rule. The NBA wants to keep Michael Jordan and Magic Johnson from playing in a pay-per-view event. The rule says players must have NBA and team approval for basketball events. FLA. INSURANCE CO. LIQUIDATED: A Leon County, Fla., circuit court Monday ordered Florida Fire and Casualty Insurance Co. liquidated. The relatively small insurer wrote homeowners' coverage and was based in Fort Lauderdale. The court named the Florida Department of Insurance as receiver. The Florida Insurance Guaranty Association will cover the company's claims, according to Insurance Commissioner Tom Gallagher. EX-MERRILL LYNCH WORKER GUILTY: A former Merrill Lynch manager Monday pleaded guilty to illegally transferring funds, according to the U.S. Attorney's Office. Dennis Singh, the former Merrill employee, transferred $25 million to First Fidelity Bank in Newark, N.J., between December 1990 and June 1991. Merrill has recovered all but $100,000. FORMER EMPLOYEE MOVED FUNDS: Johnita Johnson, a former trust security operations employee at First Fidelity Bank in Newark, N.J., Monday pleaded guilty of illegally transferring funds from the bank. The case is separate from an illegal funds transfer from Merrill Lynch to the bank, in which a defendant pleaded guilty Monday. Johnson and Dennis Singh, the Merrill ex-employee, conspired with a Singh cousin, she said. INSURANCE SUIT DISMISSAL SOUGHT: National Medical Enterprises Inc. Monday filed a motion to dismiss a lawsuit brought by eight insurance companies, citing the failure of the plaintiffs to plead claims of fraudulent activity or justify allegations under the Racketeer Influenced and Corrupt Organizations Act (RICO). The suit was filed on July 30 in U.S. district court in Washington. LAW FIRMS CUT STAFF: Half the USA's 250 largest law firms cut staff last year and held salaries for first-year associates at 1989 levels, says a survey by The National Law Journal. But don't shed any tears: First-year salaries still can hit $86,000. The Journal says of the firms surveyed, 64% cut the number of associates - lawyers who haven't become partners yet - between 1991 and this year. COURT GRANTS RELIEF MOTION: Es-Tech International Inc. Monday announced that motions for injunctive relief and a hearing have been granted in U.S. bankruptcy court in Nevada. The motions were granted over objections from the defendant, EnvirOmint Holdings Inc. The preliminary injunction replaces the temporary restraining order granted to Es-Tech International Sept. 11. REXENE OUT OF CHAPTER 11: Rexene Corp. Monday said it has emerged from Chapter 11 bankruptcy protection less than a year after filing. Company officials said the company's restructured debt and stronger petrochemical prices will make it a viable concern, but analysts say the company still is leveraged. Its fate remains tied to fluctuations in the prices of polythylene and polystyrene. LAW FIRM OFFERS GAY BENEFITS: Same-sex domestic partners of employees at the law firm of Orrick, Herrington & Sutcliffe in San Francisco will be eligible for health-care benefits beginning Jan. 1., the company has announced. Interim executive director Thomas Y. Coleman says the suggestion came through the firm's diversity committee. The coverage will not be extended to unmarried heterosexual partners. MORE MAY BID FOR CONTINENTAL: Continental Airlines, already being courted by Air Canada and Lufthansa German Airlines, may get more bids from foreign airlines. Spurred by British Airways' pending deal with USAir, other airlines may see Continental as the best hope for protecting their shares of the U.S. market, say industry experts. Possible suitors include the Scandinavian airline SAS and Air France. ROBERTS TO BECOME EXXON V.P.: Exxon Corp. Monday announced the anticipated election of C. K. Roberts as vice president and general counsel effective in January, 1993. He will replace R. S. Lombard who will retire after more than 37 years of service. Roberts is general counsel of Exxon Company USA and will transfer to Exxon Corporation's law department in Irving, Texas, Oct. 1. 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