Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.law From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: law Tue, Mar 24 1992 Date: Tue, 24 Mar 92 05:43:45 EST Message-ID: 03-24 0000 DECISIONLINE: Business Law USA TODAY Update March 24, 1992 Source: USA TODAY:Gannett National Information Network DOW CORNING PROGRAM HALTED: Federal District Court Judge Carl Rubin Monday in Cincinnati ordered Dow Corning Corp. to temporarily halt a program to pay women up to $1,200 who needed to have their silicone gel breast implants removed. Barbara Carmichael, a Dow Corning vice president, said they would comply. A lawyer who filed class action suits against Dow Corning said the program undermined his suit. COURT REJECTS THRIFT CHALLENGE: The Supreme Court Monday rejected a challenge to the takeover of failed Kansas thrift Franklin Savings Association by federal regulators. The court let stand a ruling by a U.S. Court of Appeals that regulators had the legal authority to take over Franklin in 1990. A judge originally ruled that actions by M. Danny Wall, then-director of the OTS, were arbitrary and without factual basis. (For more, see special Court package below.) BANK MERGER APPROVED: The last obstacle to the takeover of Security Pacific by BankAmerica was cleared Monday when the Federal Reserve approved the $4 billion merger. The merged bank will be the second largest in the USA behind Citicorp. It will have $192 billion in assets and hundreds of branches in 10 Western states and Hawaii. Citicorp has about $217 billion in assets. FED PUTS CONDITIONS ON OK: The Federal Reserve approved the merger of Security Pacific and BankAmerica Monday on the condition that the merged bank meet lending goals in poor neighborhoods and sell branches to avoid antitrust problems. The banks have agreed to sell 213 branches in Washington, California, Arizona, Nevada and Oregon. BankAmerica and Security Pacific first announced plans to merge Aug. 12. RTC SLIMMING DOWN: The Resolution Trust Corp. plans to cut its staff by 50% and shut nine offices next year as it concludes its task of bailing out failed savings and loans winds down, the agency said Monday. The RTC says it had only 73 thrifts in conservatorship by mid-March, all of which will be sold or merged by September. Since 1989, the RTC has collected about $234.1 billion from selling 630 thrifts. L.A. TO VOTE ON SMOKING BAN: The Los Angeles City Council votes Tuesday on whether the city will ban smoking in all restaurants. If the ban passes, as many think it will, Los Angeles would take over from Sacramento the title as largest U.S. city to have such an ordinance. Half the state's cities already have some kind of law against public smoking, and smaller communities have been strengthening bans. OPTIMISM OVER TRADE AGREEMENT: A White House spokesman Monday said that the Bush Administration is "very hopeful" of reaching a new global trade agreement by the end of April. U.S. officials had hoped German Chancellor Helmut Kohl, who visited with President Bush last weekend, would encourage French officials to agree to deeper cuts in European Community farm subsidies. Kohl said Monday he was against applying pressure. JUDGE EXTENDS PERIOD FOR CHH: Carter Hawley Hale Stores Inc. Monday announced that U.S. Bankruptcy Judge Barry Russell has extended the exclusivity period during which only CHH may file a plan of reorganization to June 30, 1992. The company also announced that Russell approved a separate motion extending the time period during which CHH may assume or reject unexpired nonresidential real property leases to June 30. NOTICE OF APPEAL FILED: Attorneys for PetroChem Insulation Co. announced Monday that they have filed a notice of appeal from the dismissal of a lawsuit. The suit challenged union use of threatened environmental permit objections as a means of extortion from developers to obtain union-only contracts. The decision to dismiss the complaint was made by Federal Judge Eugene Lynch of the Northern District of California. FIRST FED GETS FINAL APPROVAL: Murray J. Brown, president of First Federal Savings Bank of Tennessee, announced Monday that final regulatory approval had been received for the settlement of litigation with Trans Financial Bancorp Inc. As a result of the suit over a 1983 transaction, plaintiff First Federal expects to receive a payment of approximately $398,000 in the near future. ALLEGED DEAL MAY BE PROBED: Rep. John Coyners, D-Mich., has asked the Pentagon to investigate reports that the Defense Department secretly planned to bail McDonnell Douglas out of financial trouble in 1990. Defense officials allegedly gave hundreds of millions of dollars to McDonnell without telling Congress. McDonnell Douglas officials say they are not aware of any bailout plan. CAT FOOD-TUNA SEIZED BY AGENTS: Federal agents have seized 38,640 cans of decomposed fish product from a warehouse in New Jersey that was meant to be cat food but was labeled as Ocean King Chunk Light Tuna in Water. The product - manufactured in 1985 - was to be sold in the USA as 7th Heaven cat food. Ocean King Foods Inc. owner Michael Chu could not be reached for comment. SPECIAL PACKAGE ON COURT: TAX RULING TO BE REVIEWED: An appeals court ruling that allows taxpayers to deduct expenses for in-home offices even if they spend more time working elsewhere will be reviewed by the Supreme Court, the justices said Monday. The federal tax code says home-office expenses may not be claimed as income tax deductions if a taxpayer works elsewhere unless a home office is used exclusively as the principal place of business. AWARD TO MIDLER UPHELD: A $400,000 award was upheld by the Supreme Court Monday for singer Bette Midler against an ad agency that used a "sound-alike" for a 1986 TV commercial. Midler's former back-up singer was told to sound like Midler in the Ford ads. OPINION ASKED FOR: The Bush administration was asked for its view on an antitrust lawsuit filed by 19 states, local governments and businesses against insurers. The 1988 suit alleges that insurers Aetna Casualty and Surety, Allstate, Insurance Company of North America and Hartford Fire conspired with reinsurance firms to shrink coverage offered in "commercial general liability" insurance. (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. 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