Reconsider ruling, Trib managers ask

Published: Wednesday, April 10 2002 10:51 a.m. MDT

Managers of the Salt Lake Tribune have asked a federal judge to reconsider his dismissal of AT&T Corp. from a multimillion-dollar lawsuit over ownership of the morning newspaper.

The latest court filing in the case argues new evidence of alleged shady dealings between former Tribune owner AT&T, new owner MediaNews Group Inc. and competitor Deseret News warrants holding the telecommunications giant liable for events leading up to and during the December 2000 sale of the newspaper.

Attorneys for Salt Lake Tribune Publishing Co., the newspaper's management company, argue the latest information from the March 18 and 19 deposition of MediaNews President Dean Singleton shows AT&T's "pattern and conduct of inducing other parties to interfere with the Tribune's contractual rights."

The Tribune's motion to reconsider filed Tuesday said that its latest evidence combined with Stewart's misapplication of the law, is sufficient for the five of the original eight claims against AT&T to go to trial and be decided by jurors, rather than the judge.

SLTPC filed a lawsuit in federal court in December 2000 immediately following Denver-based MediaNews' purchase of Kearns-Tribune LLC, the Tribune's holding company. AT&T acquired Kearns-Tribune in March 1999 through a merger with Telecommunications Inc.

Tribune managers claim AT&T encouraged MediaNews and the Deseret News violate two agreements born in a 1997 tax-free deal in which Kearns-Tribune swapped ownership of the newspaper for $731 million of TCI stock. One agreement, managers say, grants them the right to oversee the daily operations of the Newspaper Agency Corp., the printing, advertising and circulation arm of the two newspapers. Managers believe the second agreement gives them the right to purchase the newspaper in August.

As evidence of AT&T's alleged actions, SLTPC argues that Singleton never initiated negotiations to purchase the Tribune. Twice, in 1998 and 2000, representatives of TCI and AT&T approached him about the sale, the filing states.

Further, according to the filing, Singleton testified he was told SLTPC never intended to purchase the paper and that he was encouraged to keep quiet about negotiations between MediaNews and the Deseret News regarding anticipated changes to a joint operating agreement between the two newspapers.

Singleton also said AT&T officials told him to contact Deseret News chairman L. Glen Snarr about the proposed transaction. AT&T and the Deseret News maintain that, under the joint operating agreement, the News must consent to any sale of the Tribune.

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