Monday, Mar. 10, 1975

Legal Briefs

> The Supreme Court decided last year that under federal rules, anyone bringing a class action must notify all other potential parties to the suit (TIME. June 10). That tough interpretation put a stop to such far-reaching actions as one brought on behalf of "all U.S. citizens." Sensible as that seemed, critics were quick to point out that many legitimate consumer suits would also go down the drain--as Sandra Lee Cartt has just found out. Car Owner Cartt, an elementary school teacher in San Fernando. Calif, had wondered about Standard Oil of California's claims that its F-310 gasoline reduced air pollution. When she tested the gas. she found that pollution actually increased. Later and independently, the Federal Trade Commission charged that some of the F-310 advertising was false. Cartt meanwhile had brought suit on behalf of all Standard's California customers to recover the extra nickel that each gallon of F-310 cost. A federal judge ruled that the suit could not proceed until she notified each of the 700,000 Standard credit-card holders in the state. That would cost her at least $42,000. and Cartt now reports that her efforts to raise the money from interested consumer groups have failed. As a result, so will her class action unless she manages to persuade an appeals court to ease her notification burden.

> Aware that most state unemployment insurance programs do not cover such groups as farm laborers, domestics or Government employees. Congress decided three months ago to give those workers federal benefits for up to 26 weeks. The act provided, for payment to anyone who was not covered by state insurance but otherwise met the state's definition of unemployed. Astute educators read the fine print and asked an importunate question: Since those who teach in publicly supported schools or colleges are Government employees, are they not eligible for annual summer unemployment benefits when classes are not in session? The answer varies from state to state, even though it is the Federal Government that pays the bills. Indiana has already said that its teachers do qualify under that state's definition of unemployment. New Jersey and other states are contemplating similar decisions. But even if all 50 states followed suit, by no means would all 2.5 million teachers qualify. Many take summer jobs. Others have all-year-round contracts. Still others study, or would be otherwise uninclined to meet the common requirement that those on unemployment relief be "ready and willing" to take a job in their field. Finally, federal officials expect--or hope--that at least some teachers would be too scrupulous to apply for funds obviously meant for the "truly" unemployed.

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