Tribune and News suits stay separate

A federal judge will allow lawsuits between the Salt Lake Tribune and Deseret News to continue on separate tracks in federal and state court — as long as managers of the Tribune agree not to tinker with Deseret News rights in a 1982 joint operating agreement.

U.S. District Judge Ted Stewart made his ruling Wednesday, shortly after a four-hour hearing on several motions in the case.

The Deseret News had asked Stewart to allow it to intervene in the federal suit, arguing that the Tribune managers were seeking legal decisions on rights the two newspapers share.

The Deseret News argued that the case should be dismissed because it rightly belonged in state court, where the newspapers are already involved in a suit over rights under the JOA.

But Stewart concluded the Deseret News' motion was "untimely."

The judge said significant "time and effort" had been expended on a preliminary injunction earlier this year by U.S. District Judge Tena Campbell, who had been assured by all the parties involved that the Desert News would not be a party to the case.

"It's a victory, but it's just another step in a long, long battle," Tribune publisher Dominic Welch said Thursday.

While denying the Deseret News' request, Stewart warned the managers of the Tribune that he would "hold" them to their position that they "will not in this case attempt to nullify any rights Deseret News Publishing has under the 1982 JOA."

"Protection of our rights was critical to the Deseret News," News publisher Jim Wall said. "Judge Stewart's order gives us the protection that we were seeking."

The Deseret News and Kearns Tribune LLC, the holding company now owned by Media News — each own half of the Newspaper Agency Corp., the advertising, printing and distribution entity created by the JOA.

Attorneys for the Deseret News insist the JOA has always required the News' consent to any "disposal, sale transfer or assignment" of NAC stock.

Managers of the Tribune sued Denver-based MediaNews Group and AT&T Corp. in federal court in December, challenging the sale of the newspaper's holding company.

Campbell allowed MediaNews to purchase the company from AT&T but, in a second ruling, put some restrictions on changes MediaNews made to the JOA.

MediaNews is appealing that second decision to the 10th Circuit Court of Appeals in Denver.