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Court takes strike option from Northwest attendants
Court Feed News | 2007/03/31 03:02

Northwest Airlines Corp. flight attendants can't strike over pay cuts at the bankrupt carrier, a U.S. appeals court said, upholding a federal judge's ruling. "Although this is a complicated case, one feature is simple enough to describe: Northwest's flight attendants have proven intransigent in the face of Northwest's manifest need to reorganize," a three-judge panel of the U.S. 2nd Circuit Court of Appeals said Thursday.

The ruling gives Northwest the advantage in stalled talks with attendants, who hoped to gain leverage with the chance to strike the airline. They're balking at $195 million in annual pay and benefit cuts imposed as the carrier works toward a second-quarter bankruptcy exit.

Northwest enacted the cuts July 31 after the union for its 9,300 attendants rejected two contracts negotiated by their leaders. The savings are part of the Eagan, Minn.-based airline's $1.4 billion in annual reductions in labor spending.

Northwest said in a statement that it was pleased with the ruling and that it hoped to reach a consensual agreement with the Association of Flight Attendants-CWA.

The union was "very surprised" by the decision, spokesman Ricky Thornton said, and the group is considering whether to appeal.

The union wants the National Mediation Board that governs airline labor disputes to "release" it from talks with Northwest, triggering a 30-day countdown to a possible strike. The sides last met face to face Feb. 2, and no new talks are scheduled. The attendants are urging federal lawmakers to press the mediation board to grant the release.

Unlike Northwest's other unions, the attendants don't have a claim in the airline's bankruptcy. The group would have had a $182 million claim had it ratified a contract in 2006. Thornton said there is a risk the attendants will get nothing if they don't reach an agreement before Northwest exits bankruptcy.

In its ruling, the appeals court said the U.S. Railway Labor Act "forbids an immediate strike when a bankruptcy court approves a debtor carrier's rejection of a collective-bargaining agreement" that is subject to the act and allows imposition of new terms.

"For airline unions, this is a big setback," said John Gallagher, a lawyer for the Air Transport Association, the Washington-based trade group for major U.S. airlines.

Northwest filed for bankruptcy Sept. 14, 2005, the same day as larger rival Delta Air Lines Inc. Delta expects to exit bankruptcy by April 30.



California police officer Sues to Compete in Pageant
Court Feed News | 2007/03/30 09:53

The city of Chula Vista has issued a response to a lawsuit filed by a police officer who wants to compete in beauty pageants.

Deana Mory is currently representing California in the Ms. United States beauty pageant. But she is also a police officer who patrols the streets of Chula Vista.

She told NBC police administrators said if she competes she could be reprimanded or fired because prize money and gifts from the pageants violate city police.

Mory said she would refuse the money if she won the national title, but the city did not accept her compromise.

As a result, Mory and the Police Officers Association filed a lawsuit against The Chula Vista Police Department.

Wednesday night, Liz Pursell from the city of Chula Vista released a statement saying, "There is no merit to the allegations. Ms. Mory did participate in the pageant. The city is in the process of responding to the second lawsuit. We anticipate filing a motion seeking a judgment in favor of the city."

The beauty pageant is in July, and Mory said she plans on taking part.



Mental health center to repay $556687
Court Feed News | 2007/03/29 12:06

A nonprofit provider of mental health services paid nearly $557,000 to settle allegations of improper billing to government health programs, the state attorney general's office said yesterday.

Tri-City Mental Health Center began reviewing employee complaints about irregularities in its government claims practices in 2003, and the nonprofit's board ordered an outside audit, Massachusetts Attorney General Martha Coakley said.

Tri-City reported the improper billing to the government in late 2004, and was never charged.

State and federal investigators found Tri-City Mental Health billed the state Medicaid program and the state Department of Mental Health for psychiatric services that were never provided or couldn't be documented.

The improper billing occurred for more than two years, starting in Sept. 2001 at a center in Malden.

At least one manager at the Malden office was fired as a result of Tri-City's internal investigation, Coakley said.

Ellen Dalton, a manager at Tri-City, said the improperly received government payments were used to fund the nonprofit's operations, not for any personal use by its nearly 500 employees.

Dalton said Tri-City set aside cash from recent years' operations, and has paid the $556,687 settlement total in full.

"The agency is ready to move forward, and no services will be disrupted," she said.

The nonprofit, which began operations in the 1960s, runs mental health centers in the neighboring communities of Malden, Medford, and Everett.

The settlement total equals the amount of money that investigators found had been improperly billed, plus interest, according to Dalton.

Under the settlement, Tri-City agreed to ensure future compliance with rules governing Medicare reimbursement.

The settlement relieves Tri-City and its board of any civil or administrative liability.

Coakley said Tri-City "has cooperated fully with the investigation."



Federal judge dismisses Rumsfeld torture lawsuit
Court Feed News | 2007/03/29 03:21

The US District Court for the District of Columbia Tuesday dismissed a lawsuit against former US Secretary of Defense Donald Rumsfeld for authorizing torture and abuse of detainees by US personnel in Iraq and Afghanistan. The suit asserted that Rumsfeld bears direct responsibility for detainee abuse and that his actions violated the US Constitution, federal statutes and international law. Chief Judge Thomas Hogan based the dismissal on the immunity of government officials from lawsuits and the premise that US constitutional rights do not apply overseas. While noting that the allegations of torture were "horrifying," Hogan concluded that policy considerations counsel against permitting government officials to be sued for political decisions.

The suit was brought by the American Civil Liberties Union (ACLU) and Human Rights First, which had previously sued Rumsfeld and other military officials in 2005 on behalf of eight former detainees. A war crimes action is also pending against Rumsfeld in Germany, where the German Federal Prosecutor is using Germany's universal jurisdiction law to investigate similar allegations.



Cat owners sue in California over pet food recall
Court Feed News | 2007/03/28 16:14

Two Los Angeles residents have filed a lawsuit against Menu Foods of Ontario, Canada, alleging the cat food company is to blame for their cats' recent health problems, according to court papers. The lawsuit, which seeks class action status, is asking for unspecified damages.

Kaye Steinsapir said she thought she was feeding her cat, Lila, one of the healthiest, most nutritious cat foods available.

"Lila was a healthy, vibrant cat without any medical conditions," said the lawsuit filed Tuesday in Los Angeles Superior Court. But in recent weeks, Lila began vomiting, drinking an excessive amount of water and was eventually diagnosed with acute kidney failure, the lawsuit said.

Gregory Helmer, a Los Angeles attorney retained by Steinsapir and Lois Grady of Sacramento, California, who alleges her cat, Riley, also became ill after eating tainted cat food, filed the lawsuit "on behalf of themselves and all others similarly situated."

Menu Foods recalled on March 16 several brands of dog and cat food products nationwide. Scientists at the New York State Food Laboratory last week identified the rodent poison aminopterin as the likely culprit in a scare that prompted the recall of 95 brands of "cuts and gravy" style dog and cat food by Menu Foods of Ontario, Canada.

On Tuesday, a survey by the Veterinary Information Network, which counts 30,000 veterinarians and veterinary students as members, said the number of reported kidney failure cases had already grown to more than 471. The network's founder, Paul Pion, a California veterinarian, said 104 animals have died.

The company has so far confirmed the deaths of 15 cats and one dog. Other deaths have been reported anecdotally around the United States, but Menu Foods has not confirmed them.



Supreme Court hears antitrust case
Court Feed News | 2007/03/27 15:49
The US Supreme Court heard oral arguments Monday in the case of Leegin Creative Leather Products, Inc. v. PSKS, Inc., 06-480, in which a clothing manufacturer requests the Court to overrule a 1911 Supreme Court decision, Dr. Miles Medical Co. v. John D. Park & Sons Co. that held any minimum price agreement to be per se illegal and anti-competitive. In the present case, manufacturer Leegin ceased supplying goods to retailer PSKS after PSKS lowered its prices beneath the minimum set by the manufacturer. Leegin argued that such agreements foster competition among smaller retailers by preventing large retailers from setting extremely low and predatory prices. The trial court found that Leegin's actions violated the Sherman Antitrust Act and awarded PSKS treble damages. The US Court of Appeals for the Fifth Circuit affirmed the decision in favor of PSKS. Associate Justice Stephen Breyer speculated that dropping the per se rule would raise prices, while Associate Justice Antonin Scalia suggested that some consumers prefer to pay more in return for greater customer service.


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