Business briefs for August 2, 2001

Thursday, Aug. 2, 2001 | 11:26 a.m.

Appeals court refuses to reconsider antitrust ruling

WASHINGTON -- An appeals court refused today to reconsider its decision that Microsoft illegally mingled its Windows operating system and Internet browser, handing the software giant a setback in its four-year antitrust battle with the government.

The U.S. Court of Appeals for the District of Columbia denied Microsoft's request in a brief order, clearing the way for the case to be sent back to a lower court to decide Microsoft's penalty for being an illegal monopoly.

"Nothing in the court's opinion is intended to preclude the District Court's consideration of remedy issues," the appellate judges said.

In its June order the appeals court decided that Microsoft illegally commingled software code for the two flagship products in an attempt to stunt competition and keep consumers from using one without the other. Microsoft asked the court to reconsider.

However, the jurists today also denied the Justice Department's request to speed up the case. Their decision keeps the lower court from tackling the penalty decision until mid-August.

LV man sued over liquor imports

A U.S. distributor of Allied Domecq International Holdings BV sued to stop a Las Vegas man from illegally importing what it called counterfeit Stolichnaya vodka.

Allied Domecq Spirits & Wine USA Inc., a Michigan entity, which said it has the exclusive license to import Stolichnaya vodka into the United States, sued Mark Sanders also known as Joel Noodelman in U.S. District Court on Tuesday.

Allied Domecq, which said U.S. law prohibits the sale of distilled spirits in 500 milliliter bottles, said Noodelman contacted its U.S. wholesaler and claimed to have for sale 54,000 bottles of Stolichnaya vodka in 750 milliliter bottles and "Stolichnaya Extra" vodka in 500 milliliter bottles.

The suit said Noodelman's alleged possession and offer to sell the vodka in 500 milliliter bottles in the United States where such sales are considered illegal, "evidences the illicit and counterfeit nature of (his) goods."

The defendant could not be reached for comment.

LV firm sues former manager over IRS funds

A Las Vegas landscaping contractor sued a former manager, alleging he mismanaged the company and failed to remit to the Internal Revenue Service more than $300,000 in funds withheld from its employees' wages.

Harrison Landscaping Co. LLC, which seeks a judgment against Robert Desjardins, whom it said should be liable for taxes, penalties and assessments made by the IRS, alleged Desjardins also breached a non-compete and non-disclosure agreement when he allegedly solicited its employees to join a rival.

Desjardins could not be reached for comment on the allegations.

Firm alleges misappropriation of company funds

A Las Vegas real estate investment company sued its former treasurer, alleging he misappropriated more than $100,000 in company funds to acquire properties and gaming equipment without its authorization.

Oxir Investments Inc. sued Kirill Mendelson, whom it said was hired in September 1998 and left in December 2000, in Clark County District Court. The suit alleged he used more than $100,000 in company funds for his own purposes and an additional $23,000 to buy slot machines without Oxir's authorization.

Mendelson was also accused of leasing an automobile without Oxir's consent, charging personal expenses on the company's credit card and buying two Las Vegas properties at 905 Carmel Shores Drive and 8312 Hatteras Circle as rental investments with allegedly misappropriated company funds.

Mendelson declined comment.

Litigation continues over Pahrump development

Commercial Federal Bank of Omaha, Neb., said it foreclosed on part of bankrupt E.A. Collins Development Corp.'s 2,753-acre Mountain Falls golf course community in southern Pahrump in March as part of its efforts to recover a $23 million loan.

E.A. Collins Development filed for Chapter 11 bankruptcy protection on Feb. 13 to stave off lawsuits by several banks seeking to recover more than $26 million in debts from the company.

Commercial Federal Bank, which sued the company in December for allegedly defaulting on a $23 million loan, said the bank, after getting U.S. Bankruptcy Court approval to lift the bankruptcy stay, acquired a 958-acre parcel of Mountain Falls at a foreclosure sale on March 14 for a credit bid of $15 million.

The bank, which said the $23 million loan was meant to be used to pay off existing debts on the 958-acre parcel and to develop the property, said it sued E.A. Collins Development for a second time in late July to recover the remainder of its $23 million loan.

Mountain Falls, upon completion, was to have comprised 7,520 residences, two 18-hole golf courses, two hotel-casinos and multiple general commercial structures, the suit said.

Brent Eckersley, the bank's attorney, said: "This second complaint is filed to make up the difference between the $15 million credit bid and what is owed. It's an attempt to have the court determine what the value of the property is."

The defendants could not be reached for comment.

Defecting salesman sued

A Las Vegas propane seller sued a former salesman, alleging it lost about $100,000 in business when he breached a non-compete agreement by defecting to a rival and made defamatory statements about the company.

Vegas Propane Inc. sued Kevin Owen, who is now employed by petroleum products seller Haycock Petroleum, in Clark County District Court.

The suit alleged he told Vegas Propane's customers the company was " 'going broke," "going out of business," is "looking for a buyer for its business" or "has sold the business" and that compensation would be available if they switched to Haycock.

Owen declined comment on the allegations.

Vegas firm sues customer over complaints

A Las Vegas auto repair business and its owner sued a Nevada resident, alleging they lost several customers after he allegedly posted fliers in the Las Vegas area defaming their business.

A-Best Auto Repairs and its owner, Charles Phoenix, who said they received reports from customers last May about the defamatory fliers, sued Todd Epstein in Clark County District Court. The suit alleged the company's sign was also vandalized and Phoenix had received a number of threatening phone calls at the company telling him to "go back to Iran."

The suit said the Phoenix had filed a police report about the fliers, which tell customers to boycott the mechanic because it "will rip you off." But he said he was told by the police that this was a civil matter and won't be investigated by the police.

Epstein could not be reached for comment.

Vegas builder says it was unfairly fined

A Las Vegas home builder sued Desert Trails Community Association, a Las Vegas Valley residential subdivision, alleging it was unfairly fined more than $42,000.

Christopher Homes LLC, which owns an undeveloped lot at 1900 Redbird Crest Lane in the subdivision, sued Desert Trails in Clark County District Court, alleging it was unfairly penalized for failing to start building on the property. It said the delays were caused by grading problems that weren't its fault.

The suit said the city of Las Vegas has refused to grant Christopher Homes a building permit despite the builder's efforts to rectify the grading problems. Desert Trails could not be reached for comment.