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Michelle’s Compendium
By Michelle Logsdon - January 15, 2002

PG&E’s Bankruptcy Plan in the Works

U.S. Bankruptcy Judge Dennis Montali spent most of his day Jan. 14 with Pacific Gas & Electric Co. (PG&E) representatives and its creditors trying to hash out a plan for PG&E’s climb out of bankruptcy. The disclosure statement will answer questions such as whether former PG&E employees injured on the job will receive workers’ compensation payments from the utility or its spin-off companies. Montali should decide on the plan by Jan. 16, as well as whether PG&E will be allowed to transfer its power plants and other assets from state to federal regulation. The move would take electricity pricing out of California’s hands.

Dow Buys Union Carbide; Investors say Sell Dow Stock

When Dow Chemical purchased Union Carbide Corp. last year they may not have figured long-term affects from asbestos liability lawsuits into the $10 billion price tag. The chemical company’s stock has fallen 22 percent since it settled a Carbide asbestos lawsuit, Jan. 9, and refused to disclose details of the agreement. In November 2001, Carbide reported various lawsuit liabilities, including asbestos cases, at approximately $175 million. Analysts say Dow could save its stock price from plummeting by releasing more information about the litigation.

Arbitration Agreement Null and Void When EEOC Takes Over Case

If the Equal Employment Opportunity Commission (EEOC) wants to take an employer to court for discrimination, the U.S. Supreme Court ruled, Jan. 14, that, in some cases, it doesn’t matter if the employee signed an arbitration agreement. In the case of EEOC v. Waffle House, Eric Scott Baker was fired from his job as a grill operator after he had a seizure while at work. Baker would have had to pay half of the arbitration costs; instead he took his case to the EEOC. The EEOC sued under the Americans with Disabilities Act claiming Waffle House did not accommodate Baker’s disability. The Supreme Court justices, in a 6-3 vote, ruled that the EEOC could step in and take Baker’s case to federal court.

 
 

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