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 Thu, Oct 15 1992 Date: Thu, 15 Oct 92 04:48:41 EDT Message-ID: Lines: 127 10-15 0000 DECISIONLINE: Business Law USA TODAY Update Oct. 15, 1992 Source: USA TODAY:Gannett National Information Network AMES SUES WERTHEIM SCHRODER: Ames Department Stores Inc. Wednesday filed suit against investment firm Wertheim Schroder & Co. The store said the investment firm provided shoddy advice regarding Ames' acquisition of Zayre Corp.'s discount stores. Ames said Wertheim Schroder was representing both retailers and so did not perform "the appropriate levels of due diligence." KEENE WANTS ASBESTOS FUND: Keene Corp. Wednesday called for the formation of an asbestos claims relief fund managed by the Department of Labor to resolve the nation's asbestos litigation crisis. The fund would be created entirely from money contributed by companies involved in asbestos cases, initially providing an estimated $250 million per year to pay deserving sick people fairly and promptly, Keene said. TORT COSTS REACH RECORD $132B: U.S. tort costs increased to a new high of $132 billion, or 2.3% of U.S. economic output last year. These costs are expected to exceed $300 billion, more than 3.5% of U.S. economic output, by the year 2000, according to a respected tort cost analyst for Tillinghast, part of Towers Perrin. The prediction was made Wednesday by Towers Perrin director Robert W. Sturgis. FEDERAL PROJECTS GET HELP: The Supreme Court Wednesday let stand an appeals court decision allowing contractors to hire helpers or semiskilled workers on federal construction projects. The AFL-CIO Building and Construction Trades Department and the Laborers International Union petitioned the Supreme Court to overturn a ruling which lifted a 10-year-old injunction against the Department of Labor. PHAR-MOR GETS FINANCING DEAL: Phar-Mor Inc. Wednesday said it has reached an agreement with lenders to provide up to $150 million in financing while the company is under bankruptcy protection. Phar-Mor said the debtor-in-possession financing and a new credit line will ensure that the drugstore chain's suppliers will ship merchandise on credit. The agreement is good until Feb. 28, 1994. ASSOCIATION LAUDS THEFT BILL: The American Insurance Association has said that the anti-car theft act recently passed by Congress will play a significant role in helping keep auto insurance rates from escalating. Congress passed the measure in the wake of public concern over the increasing number of carjackings. The bill awaits President Bush's signature. The bill makes the government a partner in prevention. RTC STOPPAGE WAS ILLEGAL: A federal court judge Wednesday ruled the Resolution Trust Corp. illegally stopped payment on $2.9 billion of Franklin Savings Association's bonds. The judge ruled that the federal agency failed to follow proper procedures when it curtailed interest appreciation on three zero-coupon bond issues. The bank filed the suit on behalf of its bondholders. MOBIL NOT MADE TO PAY COASTAL: Coastal Petroleum Co. said Wednesday that the Leon County, Fla., Circuit Court has declined to order Mobil Oil Corp. to return $2.1 million plus $1.2 million accrued interest to Coastal. Mobil was awarded the $2.1 million for legal costs in the companies' dispute over phosphate mining rights in south central Florida. The case was twice reviewed by the Florida Supreme Court. COASTAL DEMAND IS PREMATURE: A Florida Circuit Court Wednesday declined to order Mobil to pay a total of $3.3 million to Coastal Petroleum Corp. in a case over phosphate mining rights. Mobil originally was ordered to make payment, but after the case was reviewed by the state's Supreme Court, the high court directed that an evidentiary hearing be held. The circuit court said Coastal's demand for payment is premature. TAX MEASURE OFF BALLOT: Florida has thrown a proposed constitutional Amendment 7 off the Nov. 3 ballot. The state Supreme Court said the amendment calling for a change in the way government can tax private businesses was too difficult for voters to understand. FUND GROUP IS FOCUS OF SUIT: Pennsylvania Attorney General Ernie Preate Jr. has filed a lawsuit to block the efforts of Telcom Marketing Services Inc., based in Charlotte, N.C. Preate said only about 1% of the money raised goes to the American Association of State Troopers. The funds supposedly go to help state troopers enforce laws regarding seat belts and driving under the influence. Telcom denies fraud. PRICE CUT REQUEST DENIED: A Texas District Court has denied a motion by Dorchester Hugoton Ltd. to break a contract requiring the natural-gas producer to cut the price it receives for the bulk of its output. A Wharton County court judge has denied Dorchester's motion for a partial summary judgment in its legal dispute with Natural Gas Pipeline Co. of America. Dorchester gets 41 cents per 1,000 cubic feet. SEC COMMISSIONER URGES TALK: Securities and Exchange Commissioner Mary Schapiro says that communication among regulators and the securities industry must be increased to prevent sales practice abuses. Schapiro told a securities conference in Denver the scenario in sales practice abuses could be prevented if the industry addressed such issues as better hiring practices and the role of rating agencies. MODIFIED RATE HIKE SUGGESTED: An administrative judge in West Virginia has recommended a $1.9 million rate increase for Mountaineer Gas Co. The utility originally requested an increase of $8.5 million, according to the Public Service Commission. The commission has until Nov. 14 to modify or reject the 2% increase. After that, it takes effect for 198,000 customers in 45 counties. 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