May 2, 2002

Joyce Purnick Metro Matters column discusses cost of personal injury lawsuits to New York City; number of suits has decreased because of numerous settlements, but price tag has increased to about $500 million, as juries become increasingly generous and appellate courts are reluctant to substantially reduce awards; Mayor Michael Bloomberg wants to reduce number of tort suits; State Trial Lawyers Assn continues its annual survey of sidewalks in preparation for claims, and holds city is at fault for allowing infrastructure to deteriorate (M)

Footlights column: Mario Vargas Llosa wins PEN/Nabokov award; other PEN literary awards noted; tribute to jazz saxophonist John Coltrane will be held at Symphony Space; Amor Artis Chorus and Orchestra will present world premiere and US premiere of music by Felix Mendelssohn; Skirball Museum and Cultural Center in Los Angeles will present photography exhibit by Edward Serotta titled Survival in Sarajevo: Jews, Bosnia and the Lessons of the Past; photos (M)

Director of Federal Emergency Management Agency Joseph M Allbaugh says agency will immediately reopen more than 7,000 applications for housing assistance that agency denied afer Sept 11 terrorist attacks; acknowledges that there is 'perception' that FEMA has denied assistance to those who should have received it; says steps will be taken to avoid misunderstandings about exactly who is eligible and to ensure that all eligible cases are assisted; announcement comes after days of increasing criticism in Congress about agency's performance in responding to Sept 11 attacks; agency has rejected 7 out of 10 applicants for housing aid because it decided to limit benefits to those who could prove their lost income was 'direct result' of attacks; that standard goes beyond laws and regulations that have traditionally governed disaster relief efforts; Allbaugh's announcement of review does not specifically address new 'direct result' requirement, which he has defended in recent interviews (M)

US Treasury Sec Paul H O'Neill spars with members of Senate Banking Committee about nation's financial condition and leaving some investors with doubts about his willingness to defend weakening dollar; stresses that nothing he has said should be interpreted as any change in longstanding position of US that strong dollar is good for economy; expresses annoyance that traders routinely read more into his statements about dollar and economy than he intends, simply to generate volatility in markets; says nothing to suggest that he will intervene to stem continuing slide in dollar's value, noting that government action to support currency cannot be effective in long run if it runs counter to collective judgment of financial markets; dollar trades at 127.35 yen, down from 128.57 and 134 yen in early February; euro rises to 90.5 cents, up from 90.03 cents and 85 cents in late January; economists and representatives of business groups and organized labor tell committee after O'Neill's appearance that dollar remains so overvalued that US is having trouble competing internationally, costing jobs and profits at home; National Association of Manufacturers president Jerry Jasinowski comments; photo (M)

Article on dramatic change in auction house rivalry as Sotheby's and Christie's prepare for Impressionist, modern and contemporary art auctions in wake of Sotheby's price-fixing trial; Phillips, once viewed as strong rival, has been forced to cancel spring New York sale; photos (M)

Oakland Athletics defeat New York Yankees, 4-1; photo (M)

Dave Anderson Sports of The Times column contends that decisive Game 5 is moment of truth for New Jersey Nets, expected to defeat Indiana Pacers in Eastern Conference playoff series, tied 2-2; photo (M)

B Thomas Golisano, New York billionaire, announces his third run for governor as independent; promises to wrest Albany from clutches of special interests; criticizes Gov George E Pataki for failing to reform education and campaign finance, and doing nothing to stoke economy upstate; many Democratic and Republican strategists expect Golisano's appeal to conservatives and independents to siphon votes from Pataki; Golisano says he will finance his own campaign; in 1998 race, he spent $13 million and planned to spend more before he ran out of time; he won 8 percent of vote; photo (M)

Gov George E Pataki reaches tentative agreement with legislative leaders on New York State budget that would add $515 million to state aid for schools and restore cuts Pataki had proposed to college scholarships; agreement does not settle question of how to give Mayor Michael R Bloomberg control over New York City schools; that matter will be decided after further negotiations between mayor and Assembly Speaker Sheldon Silver, who is said to oppose giving mayor absolute power; no details are released about how governor and legislative leaders plan to make up for shortfall in tax collections in Apr that has created $1.1 billion hole in state's finances; state reportedly will spend almost all its savings and reserve funds this year as well as at least $500 million in unspent money earmarked for special purposes; officials say there will be no layoffs of state employees, but state work force will be reduced through attrition; this is one of earliest agreements on state budget in last 18 years; governor and Legislature are under increased pressure this year to forge deal early, because all of them are up for re-election; photo (M)

Superstar and potential superstar horses are being taken off racetrack early and sold to commercial breeders; prospect of millions of dollars persuades many owners to sell their thoroughbreds at young age; Fusaichi Pegasus, winner of Kentucky Derby two years ago, raced only three more times before being retired to life of a stallion; he is bred to more than 100 mares a season, commanding $135,000 a mare; Cecil Seaman, bloodstock consultant who has created database of more than 60,000 horses, says owners and breeders are more interested in millions rung up at auction tote board than winner's circle at racetrack; this development has benefited horse farms, but it is troubling for some in industry trying to find foothold in crowded sports market; horses of all abilities are not running as often; photo; graphs (L)

Fathom, start-up financed by Columbia Univ, was founded two years ago with goal of making profit by offering online courses over Internet; it found little interest among prospective students in paying for semester-length courses; now Fathom will focus on students looking for courses in professional development and continuing education, courses less expensive to produce and that cost less for students; other colleges have opted to close down their online education efforts altogether; photo; drawing (M)

Western companies operating in China that try to do business in 'Beijing style,' with private oral agreements overshadowing formal written ones, can be badly hurt by government; investors and lawyers in China say civil courts have become more effective and impartial aribters in recent years; Pricewaterhouse Coopers partner Kenneth DeWoskin says fact is that courts can still be significantly influenced by local, political and economic interests; government seizure of Frank Miu's A&W restaurant in northwest Beijing discussed (M)