Court rules for Seattle Times, dispute not over

The state Supreme Court ruled this morning on a major part of the JOA dispute between Seattle's two daily newspapers:

In a decision that could determine the future of Seattle's two major newspapers, the state Supreme Court ruled unanimously today that The Seattle Times Co. is entitled to claim losses in 2000 and 2001 under its joint operating agreement (JOA) with Hearst Corp., owner of the Seattle Post-Intelligencer.

The 9-0 decision, upholding an Appeals Court decision last year, lays to rest part of the bitter battle for survival between Seattle's two major daily papers. Over two years, that fight has climbed through the state-court system, with each side publicly accusing each other of trying to put their rival out of business.

In its decision, the state's highest court said, in effect, that while the stakes in the legal dispute over The Times 2000-2001 losses may be a high-profile matter, the case itself was a simple contractual dispute.

"The law of contracts is the same whether the parties are two publishing giants fighting for market control or two individuals disputing the cost of appliance repair work," wrote Justice Tom Chambers.

The court ruled that "the written contract between the parties is subject to only one reasonable interpretation": that the losses in those two years should be allowed.

NPI believes the JOA dispute is doing no good to the people of the Puget Sound region. We seek a resolution that allows both papers to survive, and we reaffirm our support for the Committee for a Two Newspaper Town:

"Our mission is to keep Seattle as a town served by at least two major, competitive daily newspapers. The Puget Sound area is better served with more, not fewer, forums for news and commentary."

The fight is also not over:

In its own statement, Hearst expressed disappointment in the ruling but described the case as "far from over" and said it believes it will prevail in the end.

The company indicated that it would return to pursue the remaining aspects of the case before King County Superior Court Judge Greg Canova. Canova's September 2003 ruling on the issue of the strike years was later overturned by an appelate court, a decision affirmed by the Supreme Court today.

"There are many issues yet to be resolved," Hearst said in the statement. "Hearst will continue to press its efforts to preserve two separate and distinct editorial voices in Seattle."

It's our hope that both the Seattle Times and the Seattle P-I continue to stick around - even if there isn't a JOA.