Tuesday, March 13, 2012

Providence mayor warns of possible bankruptcy

Mayor Angel Taveras painted a bleak picture Thursday of the city's finances, saying Providence faces "devastation" and could go bankrupt if retiree benefits aren't cut and tax-exempt institutions like Brown University don't pay more in lieu of taxes.

Taveras said he cut a projected $110 million deficit for the current fiscal year to less than $30 million but that the city is on track to run out of money by June. He said taxpayers and city workers have already sacrificed ? taxes and fees have gone up, several schools were closed and there are 200 fewer people on the city's payroll compared to a year ago ? and he called on retirees and nonprofit hospitals and universities to do the same.

"Everyone must sacrifice or everyone will suffer the consequences," he said at a news conference at City Hall. "We need everyone to be part of the solution."

He said the city can't afford retirees' guaranteed annual cost-of-living increases ? about 600 retirees get increases of 5 and 6 percent ? and that benefits will be cut one way or another, either voluntarily or possibly through court action. He suggested the city could go the way of Central Falls, which was taken over by a state-appointed receiver in 2010 and where pensioners' benefits were unilaterally slashed. The receiver declared bankruptcy on behalf of the city in August.

HIV-positive man who sued Atlanta gets new hearing

A federal appeals court on Wednesday granted a new hearing to a 40-year-old man who claimed the Atlanta Police Department rejected his job application because he has HIV.

The ruling was a victory for gay rights advocates and the health groups who had closely watched the case, which was brought in 2010 by a man using the pseudonym Richard Roe.

Among other findings, the three-judge panel of the 11th U.S. Circuit Court of Appeals said in the ruling that the city lulled Roe into believing he didn't need to prove his HIV was "non-serious." It ordered the judge who dismissed the lawsuit to take another look at that issue and others prompted by the lawsuit.

The ruling was no surprise, as the panel expressed skepticism about the city's arguments during oral arguments last week, and one judge suggested the court had little choice but to send the case back to the federal judge.

Monday, March 5, 2012

Federal Court of Canada Certifies Class Action

Branch MacMaster LLP and Hordo Bennett Mounteer LLP report that the Federal Court of Canada has certified the BIM Class Action against Business in Motion International Corporation and Alan Kippax. By order dated November 10, 2011 , Mr. Justice Rennie of the Federal Court officially certified the action on behalf of the national class, as represented by the Plaintiff, Mr. Mark Cuzzetto .

The lawsuit was initiated in May, 2010 against BIM and its principal, Alan Kippax. BIM operated a plan called the "Time Leverage System", recruiting representatives to sell "Perpetual Motion Products". The lawsuit alleges that the Defendants have been engaged in the operation of an unlawful multi-level marketing scheme and/or pyramid scheme contrary to the Competition Act. The class members seek damages for the money they paid to the Defendants.

Persons who have purchased the product and who wish to participate in the action do not need to do anything at this time. Persons who do not want to participate in the action must opt out by January 18, 2012 by completing the online form on the website.

Supreme Court won't hear skycaps' appeal on tips

The Supreme Court has left in place a ruling that denied $333,000 to airport skycaps who claimed they were cheated out of tips when American Airlines started charging curbside baggage fees.

The court on Monday rejected an appeal from nine skycaps at Logan International Airport in Boston. They wanted the court to review a federal appeals court ruling that overturned a lower court decision in their favor.

The skycaps sued under a Massachusetts law aimed at preventing employers from keeping tips intended for workers. The 1st U.S. Court of Appeals in Boston held that the law was pre-empted by federal aviation law regulating airfares. The court also said that soon after institution of the baggage fee, American Airlines clearly indicated with signs that the $2 fee was not a tip.

High court to review fine for mercury storage

The Supreme Court will consider throwing out an $18 million penalty against Texas-based Southern Union Co. for illegally storing mercury at a rundown building in Rhode Island.

The justices said Monday they will hear the natural gas company's appeal of the criminal penalty that was imposed by a federal judge and upheld by an appeals court.

What makes the case unusual is that the company is challenging the size of the penalty under a line of Supreme Court cases concerning prison sentences.

Southern Union had used the building in Pawtucket to store outdated mercury-sealed gas regulators that it removed from customers' homes. The mercury was initially removed and shipped to a recycling center. But when that work stopped, the regulators and loose mercury were left to accumulate inside the building.

Utah-to-Boston passenger denies child porn charge

A University of Utah professor has pleaded not guilty to viewing child pornography on his laptop during a flight from Salt Lake City to Boston.

Grant Smith, of Cottonwood Heights, Utah, was ordered held on $75,000 bail Monday and told to have no unsupervised contact with children.

Massachusetts State Police say the 47-year-old Smith was sitting in first class Saturday afternoon when another passenger saw pornographic images, alerted a flight attendant and emailed a relative who contacted law enforcement.

Smith was arrested after landing on a charge of possession of child pornography. His lawyer says he has no criminal record.

Smith is a professor in the materials science and engineering department at Utah. He has been placed on administrative leave.

Court to look at overtime pay for drug sales reps

The Supreme Court has agreed to consider whether pharmaceutical sales representatives can bill their employers for overtime, a case that could affect the pay of tens of thousands of people.

The court said Monday that it will review a federal appeals court ruling that held the sales reps do not qualify for overtime under federal labor law. Other appeals courts have ruled differently and the pharmaceutical industry joined in the call for Supreme Court review.

The sales reps meet with physicians in the hope that doctors will prescribe one company's medicine over another's. Two salesmen who once worked for drug maker GlaxoSmithKline filed a class-action lawsuit claiming that they were not paid for the 10 to 20 hours they worked each week on average outside the normal business day.