Path: bloom-picayune.mit.edu!enterpoop.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 Fri, Sep 11 1992 Date: Fri, 11 Sep 92 04:33:18 EDT Message-ID: Lines: 108 09-11 0000 DECISIONLINE: Business Law USA TODAY Update Sept. 11-13, 1992 Source: USA TODAY:Gannett National Information Network SILVERADO EX-CHAIRMAN CHARGED: The former chairman of Denver's failed Silverado Banking, Savings & Loan was charged Thursday with breaking U.S. banking laws. Michael Wise faces up to 15 years in prison and $750,000 in fines on a three-count indictment charging him with diverting $458,000 in Silverado funds. The money bought one of Wise's homes and paid for improvements on another, a lawyer said. TWA LABOR AGREEMENT APPROVED: Bankruptcy court approved a labor agreement Thursday between TWA and three unions. Under the agreement, members of the flight attendants, pilots and machinists unions will take a 15% pay and benefits cut and get a 45% stake in the company. Employee pension plan problems still need to be ironed out. COMPANIES PLAY DIRTY, SUIT SAYS: A suit filed Thursday by independent car washes wants to stop oil companies from offering free car washes with a tank of gas. In the suit, which seeks class-action status, seven owners say calling the service "free" is false and misleading advertising. The suit says oil companies must raise gas prices to offset costs. EIGHT COMPANIES ARE NAMED: Eight major oil companies have been named as defendants in a suit filed by seven owners of independent car washes that claims there are hidden costs in "free" car washes offered with a tank of gas. The companies: Shell, Mobil, Texaco, Amoco, British Petroleum, Chevron, Exxon and Phillips. The International Car Wash Association is not a party to the lawsuit. BALLY, IRS DOWN TO ONE CLAIM: A new filing with the Securities and Exchange Commission shows that a settlement with the Internal Revenue Service has resolved all but a single $32 million disagreement over back taxes in the dispute between the IRS and Bally Manufacturing. The IRS dropped a claim for $41 million in penalties. Bally's also may have to pay $50 million in interest from the $32 million disagreement. EXIDE JUDGMENT IS OVERTURNED: Exide Electronics Inc. said a federal court overturned a $14.9 million judgment awarded to a former employee in 1990, Bloomberg Business News reported Thursday. The U.S. Court of Appeals for the Ninth Circuit overturned the wrongful-dismissal award to James Hendry, a former Exide salesman. The appeals court held that the trial judge in the original case gave the jury flawed instructions. JUDGMENT WON'T ALTER EARNINGS: The $14 million judgment against Exide Electronics that was overturned Thursday in a North Carolina federal court probably won't affect earnings for the company. Exide had not taken a charge or established a reserve for the decision. With interest added, Exide would have had to pay fired employee James Hendry more than $18 million in a wrongful-dismissal suit. PHAR-MOR HIT WITH COUNTERSUIT: Accounting firm Coopers & Lybrand Thursday filed a countersuit against Phar-Mor Inc. Phar-Mor had sued Coopers & Lybrand for grossly negligent behavior because Phar-Mor said Coopers did not uncover a fraud perpetrated on Phar-Mor by two former executives. Pennsylvania law allows notification of a suit to be filed without filing papers that specify charges, so details are not available. REDSKINS NAME IS UNDER SIEGE: Seven prominent Native American leaders Thursday filed a federal administrative law action with the United States Patent and Trademark Office against the Washington Redskins football organization, seeking to cancel federal registration and protection of the trademarked term Redskins. Petitioners said they hope losing protection will persuade the organization to drop the name. TEACHER STRIKES CONTINUE: Michigan Education Association Thursday reported that teacher strikes continue in the Grand Haven and Rockford districts. Bargaining is continuing in Warren and Wayne-Westland. Major disagreements include wages, class size and employee involvement in school improvements. TAX CATEGORY PROBE POSTPONED: A House Ways and Means Committee panel Thursday postponed an investigation into proposals to create a new category of tax-exempt securities. The subcommittee on select revenue measures said it would wait for the Treasury Department to consolidate three proposals into a single suggestion. One possible exemption: Interest payments on corporate bonds. FIRM RETAINS CONSULTING GROUP: Los Angeles-based law firm Spray, Gould and Bowers has retained management consulting group The Hunter Group. Hunter specializes in legal firms. Spray, Gould said it has retained Hunter to help the firm meet the challenges of the next century. 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