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Subject: law Fri, Mar 13 1992
Date: Fri, 13 Mar 92 05:47:47 EST
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03-13 0000
DECISIONLINE: Business Law
USA TODAY Update
March 13-15, 1992
Source: USA TODAY:Gannett National Information Network
    
COURT APPROVES FLIERS' SUIT:
   A class-action suit charging American Airlines of cheating 
frequent fliers out of bonus flights can go to trial in state 
court, the Illinois Supreme Court ruled Thursday. The case could 
affect nine million people in the USA enrolled in the AAdvantage 
program before rules changes and could cost the carrier hundreds 
of millions of dollars.
    
L.A. TIMES BATTLES UNION:
   A 111-year battle against unionization at the Los Angeles Times 
has been rekindled. Management turmoil at the paper led the Los 
Angeles Newspaper Guild to began anew last fall to try to turn the 
Times newsroom into a union shop. But anti-union sentiment is 
strong. Last month, Times mailroom employees overwhelmingly 
rejected a second Teamsters organizing bid in two years.
    
MOTOWN ADDS CLAIMS IN $60M SUIT:
   Motown Record Co. L.P Thursday filed additional claims in its 
lawsuit against MCA Inc. and two of its music subsidiaries, and 
estimated damages against MCA at more than $60 million. New 
allegations: That MCA and the two subsidiaries, MCA Records Inc. 
and UNI Distribution Corp., failed to perform a now terminated 
distribution agreement with Motown.
    
COURT REVERSES HILTON RULING:
   Hilton Hotels Corp. announced Thursday that the U.S. Court of 
Appeals for the Ninth Circuit has reversed the verdict entered 
against the company in the case of Brooks vs. Hilton. That 1989 
decision, in the U.S. District Court for Nevada, had awarded 
approximately $45 million in damages to 37 former Las Vegas Hilton 
employees who were terminated in 1983.
    
CLASS-ACTION SUIT APPROVED:
   U.S. Judge Milton Pollack has preliminarily approved the 
settlement of a worldwide class-action suit that sets aside $50 
million for those who have as yet not asserted claims in the case 
against Michael Milken and Drexel Burnham Lambert. The 
class-action settlement will afford relief to people and 
businesses that have lost money but would not be in a position to 
bring their own cases.
    
AMERICA WEST WINS APPROVAL:
   America West Airlines Inc. Thursday announced that the company 
received approval, from U.S. Bankruptcy Court Chief Judge Robert 
G. Mooreman, for the assumption of the America West Arena Name 
Sponsorship Agreement. The agreement provides that the home court 
of the National Basketball Association's Phoenix Suns will be 
named the "America West Arena" for the next thirty years.
    
FCC RELAXES OWNERSHIP RULES:
   The Federal Communications Commission has relaxed rules on 
radio station ownership. The agency expanded the number of 
stations a firm can own nationwide from 12 AM and 12 FM to 30 of 
each. Rules that limited a broadcaster to one AM and one FM 
station in the same area will now allow ownership of up to three 
of each. Rules take effect Aug. 1. About half of USA stations are 
losing money.
    
FIRMS MUST TURN OVER DEPOSITS:
   A Superior Court judge in Maine has upheld a new state law that 
requires beverage distributors to give the state half of unclaimed 
deposits from bottles and cans - a sum that could surpass $3.5 
million in 1992. The lawyer for distributors says his clients need 
unclaimed money to pay for collecting, sorting and transporting 
containers. The distributors' lawyer has vowed to appeal.
    
RTC TO GET MORE MONEY:
   The House Banking Committee voted Thursday to give another $25 
billion to the Resolution Trust Corp. to clean up the savings and 
loan industry, but rejected pressure to put new conditions on how 
the RTC operates. Delays in funding could make cleanup costs 
higher. The $25 billion - if approved by the full House - would 
push the cost of the bailout to $130 billion so far.
    
CIGARETTE TAX INCREASE REJECTED:
   The South Carolina House has rejected a bill to raise the 
cigarette tax to 12 cents from 7 cents per pack. Catalyst: 
Opposition from lawmakers in the Pee Dee - a tobacco-growing 
region - and the threat of a veto by Gov. Carroll Campbell. The 
tax would have funded a $21 million plan that included $4.5 
million for textbooks and school buses.
    
CLEANUP COSTS CAN BE SHARED:
   A New York federal appeals court said Thursday municipalities 
and landfill owners can be forced to share with manufacturers the 
costs of cleaning up hazardous wastes. The ruling, the first of 
its kind, is binding only in New York, Connecticut and Vermont, 
but could influence similar cases elsewhere. At issue: Two 
Connecticut landfills on the Superfund National Priority List.
    
SLOT MACHINE BILL PASSES:
   A Connecticut legislative panel approved a bill Thursday to 
allow video slot machines in the state, but cut a provision that 
could have sent part of the revenues to municipalities. The bill 
now goes to the Finance Revenue and Bonding Committee.
    
Business Law Editor: Jason P. Smith. (919-855-3491) Making copies 
of USA TODAY Update (Copyright, 1992) for further distribution 
violates federal law.
    

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