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 10 1992 Date: Tue, 10 Mar 92 05:44:45 EST Message-ID: 03-10 0000 DECISIONLINE: Business Law USA TODAY Update March 10, 1992 Source: USA TODAY:Gannett National Information Network COURT REJECTS TERM APPEAL: The Supreme Court Monday refused to hear an appeal of a ruling by California's Supreme Court that upheld term limits for state politicians which was enacted by voters in 1990. The ruling could lead to more states enacting term limits. Besides California, Colorado and Oklahoma limit the terms of local legislators. Up to 12 states could vote for term limits for state and local officials. (For more, see special Court package below.) PLANT OFFICIALS CHARGED: Three Imperial Food Products Inc., officials were charged Monday with 25 counts of involuntary manslaughter in the Sept. 3 chicken-processing plant fire that killed 25 people and injured 56 in Hamlet, N.C. Officials said some exits were locked. A state grand jury in Rockingham indicted owner Emmett Roe; his son Brad, the plant operations director; and plant manager James Hair. FDIC APPROVES MILKEN DEAL: A deal to settle more than 150 lawsuits against jailed financier Michael Milken won approval from the Federal Deposit Insurance Corp. Monday. The $1.3 billion plan was rejected last week by the FDIC, which said it needed more information about Milken's finances. The approval came after the agency received concessions on access to information and the ability to pull out. MORE POWER FOR AGENCY: A deal to settle suits against former junk-bond king Michael Milken was approved by the Federal Deposit Insurance Corp. Monday after the agency received greater powers in the plan. The FDIC's lawyer, Tom Barr, said the agency won the right to examine Milken's finances in greater detail and to pull out of the deal if future disclosures show Milken and his family are richer than now known. CLUB OWNERS BATTLE OPPOSITION: Traditional strip joints are being driven out by recession and local regulation. But larger, more profitable clubs that can fight opposition through legal channels are emerging. Michael Peter, the USA's largest owner of upscale nude and topless cabarets with 23, says he spent about $2 million in legal fees the past 18 months fighting city ordinances. MACY'S CONTINUES COST CUTTING: R.H. Macy, which filed for Chapter 11 bankruptcy court protection in January, made its second major cost-cutting announcement Monday. The retailer said it will cut about 200 jobs from its Northeast division. Spokesman Mike Frietag said the move will affect employees who have been working for less than a year. Thursday, Macy's announced it will close 57 stores. CASINOS FILE FOR CHAPTER 11: Donald Trump's Atlantic City Castle and Plaza casinos Monday filed a "pre-packaged" bankruptcy plan. The casinos were able to file the pre-packaged plan because they had already received approval from at least two thirds of bondholders, which could reduce the time it will take to reorganize in the U.S. Bankruptcy Court. Trump's Taj Mahal emerged from protection last year. PROP 103 SUIT REJECTED: U.S. District Judge Charles A. Legge Monday ruled that it would be inappropriate for a lawsuit challenging the constitutionality of California's Proposition 103 to be heard in federal court before first being heard in state court. The suit was filed against California Insurance Commissioner John Garamendi by three insurance companies. COURT CONFIRMS PARRETTI ACTION: A spokesperson for Pathe Communications Corp. and Credit Lyonnais Bank Nederland announced that a final judgment was entered Monday by the Delaware Chancery Court confirming that CLBN had properly removed Giancarlo Parretti and his associates as directors of PCC. The court also said new directors had properly been elected to manage the company. SPECIAL PACKAGE ON COURT: COURT TO HEAR MAGAZINE CASE: The Supreme Court Monday agreed to hear a case involving a Cincinnati ban that keeps newsracks holding free magazines from being placed on public sidewalks. Publishers of free magazines advertising real estate and educational activities sued after they were told their magazines were considered commercial handbills, not newspapers, and could not be distributed from newsracks. APPEALS COURT UPHELD RULING: In a case to be heard by the Supreme Court, the 6th U.S. Circuit Court of Appeals upheld a ruling for two publishers of free magazines in suits against Cincinnati. The publishers sued over a ban on the distribution of their magazines from newsracks in the city. City officials appealed, arguing that the ban is a valid regulation to promote street safety and aesthetics. WORKERS' COMP RULING UPHELD: The U.S. Supreme Court Justices Monday unanimously upheld a Michigan law that could force General Motors Corp. and Ford Motor Co. to refund $25 million to disabled workers. The ruling strengthened the power of states to force businesses to pay previously owed workers' compensation benefits. (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. 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