The Business Law Brief sm (August, 1999)
The new "Year 2000 Readiness and Responsibility Act" seeks to limit the litigation fallout expected from the Y2K bug, Among the Act's provisions: A pre-litigation notice requiring the parties to attempt to resolve the matter before litigation; provisions regarding proportionate liability, caps on punitive damages for small businesses, limits on actual damages. It does not negate the parties' own existing contracts, and applies to any action filed after January 1, 1999, for a failure occurring before January 1, 2003. Each complaint must state specifically the defects alleged and the damages incurred. Class Actions are limited. Formerly known as H.R. 775, the Act can be located at http://thomas.loc.gov.
After registering more than 5 million domain names, including owner information for domains ending in the popular .com, .net and .org, Network Solutions, Inc., restricted access to its "whois" database, contending that the data it has gathered during its 5-year monopoly belongs exclusively to it. In response, the U.S., which in recent weeks has opened competition in the registration of such domain names under its government-sponsored body ICANN (Internet Corporation for Assigned Names and Numbers), ordered Network Solutions to open access to the database, or face cancellation of its contract. Network Solutions contends that it has certain legal rights in the database, including rights in its compilation. Now, the EU's Commission began an informal probe into licensing agreements signed by Network Solutions with European companies, in a stated effort to make sure that NSI's monopoly does not extend to Europe.
The EU Commission has threatened legal action against nine European Union countries for failing to implement fully the bloc's new data protection law. The EU's executive body went warnings to France, Luxembourg, the Netherlands, Germany, Britain, Ireland, Denmark, Spain and Austria. The data protection law, which took effect last October, guarantees EU citizens broad rights to control how personal information about them including computerized data, is collected and used.
Insurers brought action against insured, contending that policies provided offering coverage for "defamation" and "advertising" injuries did not apply to defendant-insured's alleged misappropriation of customer list from former employer, and subsequent competition with former employer. The Court found that such use of customer list did not involve injury to reputation, as there was no allegation that customer list was used to slander former employer's product. In addition, use of customer list did not result in covered advertising injury, since such injury would be limited to advertising activities of insured's own goods or products. (Dissent filed.) Western States Insurance Co. v. Wisconsin Wholesale Tire, Inc., No. 97-3918 (7/22/99). http://www.kentlaw.edu/7circuit/1999/jul/97-3918A.html
Defendant-employer's statement to employee during termination because of Reduction in Force (RIF), "What would you think if we gave you early retirement, with some extra compensation because of your age?" did not constitute direct evidence of age discrimination. Defendant's suggestion of retirement, by itself, does not give rise to inference of age discrimination where, as here, suggestion made as option to make more palatable plaintiff's termination during RIF. In addition, reference was made only once, as opposed to repeated comments indicating desire by employer to get rid of older employees. Pitasi v. Gartner Group, Inc., No. 98-1496 (7/23/99). Appeal, N.D. Ill., E. Div. Aff'd. http://www.kentlaw.edu/7circuit/1999/jul/98-1496.html
"CALLING PARTY PAYS" REGS PROPOSED: The Federal Communications Commission is proposing to remove regulatory obstacles to the offering to consumers of "calling party pays" services by commercial mobile radio services providers. 64 FR 38396, July 16, 1999. http://clr.findlaw.com/content/64fr38396
FEDERAL CROP INSURANCE AMENDMENTS IMPLEMENTED: The Federal Crop Insurance Corporation has issued regulations concerning submission of policies, implementing legislation. 64 FR 38537, July 19, 1999, amending 7 CFR Part 400. http://clr.findlaw.com/content/64fr38537
TAX COMPROMISE REGS ISSUED: The Internal Revenue Service has issued temporary regulations concerning compromises, implementing recent legislation. 64 FR 39020, July 21, 1999, amending 26 CFR Part 301. http://clr.findlaw.com/content/64fr39020
ELECTRONIC FEDERAL TAX DEPOSIT REGS ISSUED: The Internal Revenue Service has issued regulations concerning the deposit of federal taxes by electronic funds transfer. 64 FR 37675, July 13, 1999, affecting 26 CFR Parts 1, 20, 25, 31, and 40. http://clr.findlaw.com/content/64fr37675
PROPOSED CHANGE IN NON-LOCAL CHECK HOLD WITHDRAWN. The Federal Reserve Board has withdrawn a proposal to shorten the maximum hold for many nonlocal checks. 64 FR 37708, July 13, 1999. http://clr.findlaw.com/content/64fr37708
CONTROLLED FOREIGN CORPORATION HYBRID BRANCH TAX REGS PROPOSED: The Internal Revenue Service is proposing regulations concerning controlled foreign corporation hybrid branch transactions. 64 FR 37727, July 13, 1999. http://clr.findlaw.com/content/64fr37727
H. & R. Block's "Rapid Refund Program" in which income tax filers could receive instant cash in anticipation of a tax refund from a return filed by Block, were financed by an arrangement with Bank One, which shared the financing charge billed to clients with Block, unknown to its clients. However, such action did not violate Illinois' Consumer Fraud Act (CFA). Block complied with Federal Truth In Lending Act (TILA), and CFA does not require more extensive disclosure. Plaintiffs could not support claim under CFA, despite appearance of misrepresentation resulting from bank kickbacks of part of Block's finance charge for loan. In addition, no fiduciary duty existed between Block and client, since, as to bank, Block was not client's agent. Beckett v. H&R Block, Inc., No. 1-98-0064 (6/30/99). Cook Co. 1,st Dist. http://www.state.il.us/court/appellates/1999/1980064.htm
Contending that the gasoline pumps attached to the realty from which it leased its gas station were covered under the "property of others under your control" portion of its personal property coverage, Plaintiffs sought insurance coverage from Defendant insurer when a motorist ran into a gas pump and severely damaged it. However the Court ruled that the gas pumps were "fixtures" attached to the realty, which came under the "buildings" portion of the policy, and Plaintiffs did not have coverage for the building. A and A Market, Inc. v. Pekin Insurance Company, No. 1-98-0437, (6/30/99). Cook Co. 1st Dist. Aff'd. http://www.state.il.us/court/appellates/1999/1980437.htm
Plaintiff-Employee contracted hepatitis, which left her unable to work. At the end of her Temporary Total Disability period, she was required to return to work or be terminated. Employee could not return to her former job, but asked that she replace a less-senior employee holding a different job to which she would be entitled under the collective bargaining agreement, saying that such action would constitute a "reasonable accommodation." The Court did not agree, and granted Defendant-Employer's Motion for Summary Judgment, holding that the ADA does not require that an employer bump employee from a position he holds in order to accommodate disabled employee. The fact that the disabled employee has a contractual right to said position is irrelevant. Pond v. Michelin North America, Inc., No. 98-4247 (6/28/99). Appeal, N.D., Ind., Ft. Wayne Div. Aff'd. http://www.kentlaw.edu/7circuit/1999/jun/98-4247.html
Retained by Defendant to write a report pursuant to contract, Plaintiff refused to alter report per Defendant's requests, and filed a copyright of his version of the report. Later, the Defendant also filed a copyright of its version of the report, altered by another author. Plaintiff then sued for copyright infringement and Lanham Act claims, alleging among other things that he was not given credit for having written the report. His claim was dismissed, the Court holding that pursuant to contract, Defendant had the non-exclusive license to "reproduce, publish, and use such materials in whole or in part and to authorize others to do so," and that without an express provision in the contract, an author who sells or licenses his work does not have an inherent right to be credited as the author of the work. Kennedy v. National Juvenile Detention Association, No. 98-1458 (7/13/99). Appeal, W.D. Wisc. Aff'd. http://www.kentlaw.edu/7circuit/1999/jul/98-1458.html
© 1999, Perfectly Legal Publications, Inc. <http://www.PerfectlyLegalPubs.com/>
Some links are not permanent and may expire.
All Rights Reserved
The Business Law Brief was written as a public service.