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 Wed, May 6 1992 Date: Wed, 6 May 92 05:32:34 EDT Message-ID: 05-06 0000 DECISIONLINE: Business Law USA TODAY Update May 6, 1992 Source: USA TODAY:Gannett National Information Network D.C. LAW DISCRIMINATES: A Washington, D.C., law that reserves 35% of city contracts for minority-owned businesses illegally discriminates against white business owners, a federal appeals court said Tuesday. At issue: Tens of millions of dollars in contracts the district awards annually to minority-owned businesses in Washington and the Maryland and Virginia suburbs. LLOYDS MAY HAVE TO PAY: Going to the bathroom during business hours is still considered being at work, a New York federal judge said Tuesday in a ruling that could cost Lloyd's of London $1.5 million. At issue: Robbery of a diamond dealer required by Lloyd's insurance policy to have two employees on duty. One had gone to the bathroom. That's "not inconsistent with being on duty," said Judge Louis Stanton. O&Y SELLING TO AVOID FILING: In order to avoid filing for bankruptcy-court protection, Canadian real-estate giant Olympia & York said Tuesday it is selling an 18% stake in Santa Fe Pacific, a transportation and mining company, worth about $400 million. Some banks are pushing for bankruptcy protection and creditors are becoming impatient over attempts by the firm to restructure its $17 billion debt. FAA MAKES RULES CHANGE: The Federal Aviation Administration Tuesday gave airlines until December to implement changes aimed at making planes easier to evacuate. The new rules mandate wider distances between rows or the removal of seats near emergency over-the-wing exits. "We think it's a step in the right direction," says David Melancon of the Association of Flight Attendants. RULE WILL COST $4.3 MILLION: The FAA says a new rule designed to improve access to emergency exits will affect 2,579 airplanes at a cost of $4.3 million from next year to 2002. That's less than 1% of a major airlines' 1991 revenue. USAir and American Airlines say they won't know the effect until they have analyzed the rule. The Aviation Consumer Action Project called the rule an improvement. VERSAR, CITY SETTLE: Versar, Inc., announced Tuesday the settlement of all matters in dispute between the City of Sterling, Colo., and the Arix Corporation, now Versar Architects & Engineers, Inc., a wholly owned subsidiary of Versar, Inc. As a result of the settlement over a suit concerning the city's wastewater treatment plant, Versar A&E will pay Sterling $650,000. BIDEN CALLS FOR PENALTIES: Sen. Joseph R. Biden Jr., D-Del., chairman of the Senate Judiciary Committee, Tuesday introduced a bill aimed at creating stiff penalties for those in the health-care industry found guilty of fraud. Biden claimed Americans are bilked out of $75 billion a year in medical costs. The bill also calls for the deployment of new FBI agents and attorneys to investigate fraud. PRISON SENTENCES PROPOSED: A bill proposed Tuesday by Sen. Joseph R. Biden, D-Del., proposes up to 10 years imprisonment and maximum fines of $250,000 for hospital personnel, medical equipment suppliers, doctors and pharmacists who are caught bilking the system. If a patient is injured as a result of fraud, the prison term would double and could reach life if a patient dies as a result of that fraud. TALKS TO RESUME WEDNESDAY: Talks between the Detroit Newspaper Agency and its unions Tuesday failed to produce a contract settlement. Talks will resume Wednesday. By mutual consent, the current contracts were extended through 2 p.m. Wednesday. The Detroit News and the Detroit Free Press continue to be published normally during the talks. FIRST SALES TAX FOR COUNTY: The Cook County (Ill.) Board Tuesday approved the county's first sales tax. The board said it feels the .75% levy is needed to keep property taxes from doubling over the next five years. Combined with state, city and transit sales taxes, the levy pushes the total sales tax rate in Cook County to 8.75%. VETO CRITICIZED: Rural activists and church groups Tuesday criticized Iowa Gov. Terry Branstad for vetoing a bill that expands the rights of Spanish-speaking workers recruited to the state. The bill would have forced employers to provide transportation home if workers are fired. Current law requires transportation if a worker quits. Branstad said the current law is sufficient. MAINE LAW DELAYED: A new law in Maine setting a $300,000 minimum liability for taxi companies - due to take effect June 1 - won't begin until January 1, a state Department of Motor Vehicles official said Tuesday. The delay gives lawmakers time to reconsider the law. Opponents say the law would triple insurance rates and drive fares up. FORMER SENATOR PLEADS GUILTY: Former Kentucky state Sen. John Hall pleaded guilty in Louisville to felony charges of extortion and bribery Tuesday. It is the first case stemming from a two-year FBI investigation of the banking and racing industries. 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