Business briefs


POSTED: Friday, June 19, 2009

Island Air pilots OK 4-year contract

Island Air pilots have signed a new collective bargaining agreement with the company that provides annual wage increases totaling 12 percent over the next four years.

Other features of the contract include work-rule advances and furlough protections.

“;Faced with many challenges throughout the negotiating process, we believe the end result speaks for itself,”; said Capt. Charlie Cizsek, chairman of the Air Lines Pilots Association unit at Island Air. “;We are pleased with management's willingness to work with us toward achieving a new agreement that recognizes the pilots' contributions to the success of Island Air.”;

Island Air, which has about 50 pilots, flies more than 50 daily flights plus charter service to all eight major airports in Hawaii.

The contract became amendable Nov. 30, 2007, and a tentative agreement followed 16 months of negotiations. Union leaders at Island Air ratified the agreement after getting “;overwhelming support”; from union's members.


Migita to head bankers association

Ronald Migita, president and chief executive officer of Central Pacific Bank, has been named president-elect of the Hawaii Bankers Association for the 2010 fiscal year.

He succeeds Donald Horner, chairman, president and CEO of First Hawaiian Bank.

Other new officers include Vice President Allan Landon, chairman and CEO of Bank of Hawaii, and Secretary-Treasurer Warren Luke, chairman, president and CEO of Hawaii National Bank.


Judge orders Scrushy to pay $2.9B

BIRMINGHAM, Ala. >> A state judge ordered former HealthSouth CEO Richard Scrushy to pay nearly $2.9 billion to shareholders who sued over a massive accounting fraud that nearly sent the rehabilitation chain into bankruptcy.

Circuit Judge Allwin E. Horn, who heard the case without a jury, ruled yesterday in favor of HealthSouth shareholders who filed a lawsuit claiming Scrushy was involved in years of overstating the company's earnings and assets to make it appear the company was meeting Wall Street forecasts.

Horn wrote in his ruling that Scrushy “;knew of and participated in”; the faked reports filed with regulators from 1996 to 2002. He said the HealthSouth founder also “;consciously and willfully”; violated his financial responsibilities as CEO.


Settlement keeps Discover out of red

CHARLOTTE, N.C. » Discover Financial Services said yesterday it managed to remain profitable during its fiscal second quarter, thanks to a payment from a lawsuit settlement.

Without the gain from the lawsuit settlement, the credit card lender would have had a loss due to rising defaults and delinquencies. Nearly all lenders are seeing more customers stop making their monthly payments as the economy falters and unemployment surges.

Discover said earning fell to $209.2 million, or 43 cents a share, compared with $234.1 million, or 48 cents a share, a year earlier.

The company's results were bolstered by a $473 million payment received as part of a $2.75 billion settlement of an antitrust lawsuit with Visa Inc. and MasterCard Inc. The payment boosted Discover's profit by $295 million after taxes.



;  Three members of the law firm of Starn O'Toole Marcus and Fisher have received top ranking in the 2009 Chambers USA Directory of America's Leading Lawyers in Business:

» Kenneth B. Marcus was recognized in real estate and corporate/commercial. He is the director of the firm and has extensive experience in formation of partnerships and limited liability companies and corporate finance.

» Peter Starn earned distinction in real estate from the legal directory. He is the founder and president of the firm and has extensive experience in corporate finance, real estate and mergers and acquisitions.

» Terence J. O'Toole received distinction in litigation: general commercial. He is the director of Starn O'Toole Marcus and Fisher and heads up the law firm's litigation team.