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 Thu, Sep 3 1992 Date: Thu, 3 Sep 92 04:19:20 EDT Message-ID: 09-03 0000 DECISIONLINE: Business Law USA TODAY Update Sept. 3, 1992 Source: USA TODAY:Gannett National Information Network SEARS SETTLES AUTO CHARGES: Sears Wednesday reached an out-of-court settlement for $8 million over charges involving operations of California Sears Auto Centers, Bloomberg Business News reported. The company said the agreements will have only a slight impact on its finances, estimating the net after-tax impact at less than $15 million. Charges surfaced first in California and then in New Jersey. SEARS SETTLES WITH COUPONS: Sears Wednesday said it settled 19 class-action lawsuits brought against it by consumers and state regulators over allegations that Sears auto repair centers cheated customers by making unneccesary repairs. Sears is offering $3 million in $50 coupons to customers throughout the USA who bought certain Sears auto services between Aug. 1 1990 and Jan. 31, 1992. FONAR SUES HITACHI, GE: Fonar Corp. Wednesday said it filed a patent infringement suit against Hitachi Ltd. and General Electric Co., plus other parties not mentioned. Fonar makes and sells magnetic resonance imaging systems for medical diagnosis. A GE spokeswoman said the company had not seen the suit. A spokesman for Hitachi was not available for comment. CATERPILLAR CONTRACT EXTENDED: Caterpillar Inc. said Wednesday its final contract offer to United Auto Workers employees was extended to a term of six years, up from three years. Caterpillar called the contract the best in its history and said cost-of-living adjustments and pensions and other benefits would continue under the contract. HOMEOWNERS SUE BUILDER: A group of homeowners whose homes were damaged by Hurricane Andrew filed suit Wednesday against the builder, Lennar Homes Inc. The suit accuses Lennar of not complying with building codes. Lennar is a unit of Lennar Corp., Florida's largest builder. Lennar Homes denied the allegations and said it would contest. The lawsuit did not mention specific problems. LENNAR HAS BEEN SUED BEFORE: A group of Florida homeowners has sued homebuilder Lennar Homes for damage the homes sustained in Hurricane Andrew. The group of 80 homeowners in the West Kendall development of Hampshire Homes has sued Lennar before, in May 1991. That suit was specific, while Wednesday's suit was not. The 1991 suit spoke of the use of untreated wood and ungalvanized steel bolts. MIT TO FIGHT AID RULING: Massachusetts Institute of Technology says it will fight Wednesday's federal court ruling that the school conspired illegally to fix financial aid awards. Calling the ruling an "unwarranted intrusion by the federal government," MIT President Charles M. Vest said the decision would make it even harder for colleges to "maintain need-blind admissions to all." RULING BUSTS TRADITION: At issue in a financial aid conspiracy ruling against Massachusetts Institute of Technology Wednesday is a 35-year tradition of cooperation among Ivy League colleges and MIT. The schools share financial aid data on scholarship candidates admitted to more than one school within the group. That allows the schools to offer with similar aid packages, eliminating bidding wars. ATLANTIC GENERAL SUED: Florida Treasurer and Insurance Commissioner Tom Gallagher Wednesday filed suit against the former officers and directors of Tampa, Fla.-based Atlantic General Life Insurance Co., alleging self-dealing and corporate waste and seeking more than $20 million in damages. Gallagher and the state Department of Insurance are court-appointed receivers for the insolvent Atlantic General. SUIT CHARGES THEFT, CONSPIRACY: A lawsuit filed Wednesday against Atlantic General Life Insurance Co. alleges, among other things, breaches of fiduciary duty and waste of corporate assets; civil theft; and conspiracy. The suit was filed by Florida Treasurer and Insurance Commissioner Tom Gallagher. The suit seeks a freeze of the assets of the former officers. ILLINOIS POWER REQUEST DENIED: The Illinois Commerce Commission Wednesday denied a bid by the Illinois Power Co. for a stay of an earlier ruling. Illinois Power also lost a request for a rehearing. A utility spokeswoman said the company will appeal this week or next. The utility had asked the ICC to reconsider a decision keeping it from recouping $230 million in costs from its Clinton nuclear power plant. UTILITY MUST REFUND $9 MILLION: Illinois Power will have to write off $202 million. The utility also must refund about $9 million to customers and cut rates by $23.5 million. Those actions will be delayed while the utility appeals the latest decisions. Standards for a rate increase were applied incorrectly, the court said. ANOTHER GM PLANT CLOSES: A seventh General Motors plant was closed Wednesday as a week-old strike at GM's Lordstown, Ohio, parts plant continued to cause shortages. The shutdowns have affected 32,500 workers. The latest victim: An Oklahoma City plant that makes midsize Buicks and Oldsmobiles. Another 4,700 GM workers were to be on indefinite layoff by the end of Wednesday. KLH TO GO OUT OF BUSINESS: KLH Computer Wednesday announced it would stop making computers and go out of business. It already has informed employees. The company will shut down over the next two to three months. The low-cost personal-computer supplier has been under Chapter 11 bankruptcy since April. AIR CANADA REVISES MERGER OFFER: Air Canada said Wednesday it has presented PWA Corp. with a revised merger proposal that includes creating a new holding company. The new plan also includes a proposal to keep the management of Canadian Airlines International in Calgary. It also would keep Air Canada's management in Montreal. Air Canada said its merger offer should be seen as a partnership, not a takeover. 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. 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