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LITIGATION:
12 Months Ended
Apr. 30, 2012
Commitments and Contingencies Disclosure [Abstract]  
Legal Matters and Contingencies [Text Block]
(17)        LITIGATION:
 
Item 3.                    Legal Proceedings
 
In March 2009, a civil action was commenced in the United States District Court for the Southern District of New York entitled Anderson News, L.L.C., et al. v. American Media, Inc., et al.  Anderson News, L.L.C. (“Anderson”) was a wholesaler of magazines.  Anderson has alleged that magazine publishers and distributors, including a Company subsidiary, Kable Distribution Services, Inc. (“Kable Distribution”), conspired to boycott Anderson to drive it out of business, and that other wholesalers participated in this effort.  Anderson has asserted claims under Section 1 of the Sherman Act (antitrust), for defamation, for tortious interference with its contracts with retailers, and for civil conspiracy.  Damages have not been quantified, but would presumably be alleged to be substantial.  Anderson has alleged that the distributor and publisher defendants acted in concert to cut off Anderson from its supply of magazines to enable them to gain control of the single-copy magazine distribution channel. Kable Distribution is vigorously defending the lawsuit and moved, along with the other defendants, to dismiss the action.  Those motions were granted by an Opinion and Order dated August 2, 2010, by which Anderson was also denied leave to replead.  Anderson moved for reconsideration of the Opinion and Order and for permission to replead.  That motion was denied by an Order dated October 25, 2010.  Anderson’s attorneys filed a Notice of Appeal in the U.S. Court of Appeals for the Second Circuit.  By decision dated April 3, 2012, the Court of Appeals held that Anderson should have been allowed to file an amended complaint.  The defendants then petitioned the Court of Appeals for a rehearing of the decision and on July 18, 2012, the petition was denied.  Unless a stay is granted, the case is now expected to proceed with Anderson filing its amended complaint and Kable Distribution denying all allegations of wrongful conduct on its part.  The defendants are considering petitioning the United States Supreme Court to consider the case.  The Company is not in a position to predict the outcome of the lawsuit, nor can it estimate a range of possible losses.

In December 2009, Kable News Company, Inc. (“Kable News”) received a demand for arbitration by the American Arbitration Association from Nest, LLC, a publisher which had copies of magazines and a book stored at a Kable News leased warehouse that were destroyed in a fire.  Claimant is seeking damages of $650,000 and is contending that the magazines were unique and artistic, that at the time of their destruction claimant was in the process of finalizing a contract for their sale, and that due to the special printing involved, the replacement cost is far in excess of the purchase price.  The property and casualty insurance carrier for Kable News is providing the defense in this proceeding.  Discovery of the basis for claimant’s alleged damages has yet to be completed.  Kable News is vigorously defending the proceeding and believes it has meritorious defenses to the asserted value of the loss.  The arbitration hearing is now scheduled for August 7 and 8, 2012.  The Company is not in a position to predict the outcome of this proceeding.  After considering the amount of available insurance coverage, the range of possible loss is from zero to $425,000 should the publisher prevail in this arbitration; however no amount has been accrued in the accompanying financial statements.
 
On July 11, 2011, Kable Distribution was served with a summons and complaint in a lawsuit entitled Distribution Integrated Services, Inc. v. Kable Distribution Services, Inc.; Island Periodicals Puerto Rico, LLC brought in the Tribunal de Primera Instancia, Sala de San Juan, in Puerto Rico.  Kable Distribution’s co-defendant, Island Periodicals Puerto Rico, LLC, is a sub-distributor of magazines for Kable Distribution in Puerto Rico, a position formerly held by plaintiff.  In the lawsuit plaintiff has alleged that the termination by Kable Distribution of plaintiff’s former sub-distributorship arrangement with Kable Distribution was in breach of a contract between them, and therefore in violation of Puerto Rico Law 75, a statute that provides remedies to a dealer in property for the unjustified termination of its dealership arrangement.  Plaintiff is seeking damages from Kable Distribution in the amount of $2,000,000 and injunctive relief.  Kable Distribution’s co-defendant has indemnified it against the claims asserted by plaintiff.  Kable Distribution is vigorously defending the matter.  However, the lawsuit is in an early stage and it is too soon to predict either its outcome or a range of possible losses.
 
While the ultimate results of all these matters cannot be predicted with certainty, management believes that they will not have a material adverse effect on the Company’s consolidated financial position, liquidity or results of operations.  Unless so noted, no provision has been made in the accompanying financial statements for the above items.