Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

P-I Dealt Blow in Seattle Times Legal Spat (Moonbatty Leftist Screed Sheet On Verge of Extinction)
Yahoo! News ^ | 6/30/2005 | Rachel La Corte

Posted on 06/30/2005 4:26:45 PM PDT by KentTrappedInLiberalSeattle

OLYMPIA, Wash. - The state Supreme Court on Thursday dealt The Seattle Times a major victory in its efforts to end a joint operating agreement with the Seattle Post-Intelligencer — a ruling that could lead to the P-I's closure, though more legal battles remain.

"We recognize this day is not a happy day in the ongoing story of Seattle as a two-newspaper town," the high court ruled in its unanimous decision, written by Justice Tom Chambers. "We genuinely hope that both the Seattle Times and the Seattle P-I will continue to serve our communities and prosper."

The Times has been trying to get out of the agreement with the P-I's parent company, The Hearst Corp., since April 2003, saying the agreement is no longer profitable because of changes in the market. The Times seeks to invoke a clause in the contract that allows either paper to end the agreement if it suffers three consecutive years of losses.

Hearst argued that the Times shouldn't be allowed to count losses caused by extraordinary events, such as the 49-day strike against both dailies in late 2000. The Times argues that under the language in the contract, no such exception exists, and the court agreed.

"By the plain terms of the agreement, labor costs, including those occasioned by strikes, are 'agency expenses' under the terms of the contract," the court wrote. "The Times may use those 'agency expenses' to calculate 'agency revenues' for application of the loss operations clause, which permits either party the right to terminate the agreement after three consecutive years of losses."

In February, the high court heard arguments from the Post-Intelligencer attorneys, who argued the paper would collapse without the agreement.

Last year, a three-judge state Court of Appeals panel unanimously ruled that The Times could count strike-related losses in seeking to end the JOA, which has been in place since 1983. Hearst has said the P-I can't survive without it, because it lacks staffing and facilities for key business functions, including printing.

"It is our hope that the Hearst Corporation will join The Times in modifying the JOA contract to reflect today's difficult newspaper economics so that The Times has a fair chance to become profitable again," said Times publisher Frank Blethen. "A return to profitability will enable The Times to remain locally owned and focused on quality, independent journalism for our city and our region."

Under the agreement, The Times — owned by the Blethen family with a minority share held by Knight Ridder — handles printing, distribution and advertising at both papers in exchange for 60 percent of their joint revenues.

The Times said it suffered financial losses under the agreement in three consecutive years — 2000, 2001 and 2002 — thus triggering an 18-month period during which The Times and the P-I could negotiate the P-I's closure.

But Hearst sued, arguing that the strike was an extraordinary event, and could not be counted toward three consecutive years of losses. A King County Superior Court judge agreed with that argument in 2003, but the state Court of Appeals reversed that ruling last year.

Hearst lawyer Kelly Corr said the P-I would continue to fight the Times' efforts by arguing that the Times' deliberately lost money so that it could seek to end the agreement.

"After the strike years, the Times spent money like a drunken sailor to manufacture that magical third year of loss," Corr said. "We're going to closely examine the losses from 2000 and 2001 aside from the strike as well."

But Stephen Barnett, a newspaper antitrust-law expert at the University of California-Berkeley, said that the odds are against Hearst.

"It looks like bad news for the JOA," Barnett said. "As in any marriage, if one party wants out, the union is unlikely to last very long, whatever a court may say."

JOAs are an exception to federal antitrust law that are allowed by the Newspaper Preservation Act of 1970. The law was designed to maintain multiple editorial voices in markets that might not otherwise support more than one major newspaper.

The court, while expressing hope that both papers would remain, argued that it couldn't change the contract based on the desire to keep Seattle a two-newspaper town.

"Because only the Times' interpretation of the JOA is reasonable, the strong public policy favoring the maintenance of diverse reportorial and editorial voices in the same community cannot be a basis to rewrite the contract," the ruling said.

"Obviously, this ruling means there's a greater likelihood there will be one newspaper in Seattle," said Phil Talmadge, co-chairman of the Committee for a Two-Newspaper Town, a citizens group that intervened in the case. "Every ruling that seems to press in the direction of having just one remain is disappointing to us."

Barnett argued that the end of the JOA doesn't necessarily mean the end of the P-I.

"If Seattle can really support two papers as Hearst claims, then Hearst has deep enough pockets to produce the P-I outside the JOA," he said. "If Hearst itself is not going to publish the P-I, it owes it to the people of Seattle to find someone who will."


TOPICS: Business/Economy; Editorial; Miscellaneous; News/Current Events; US: Washington
KEYWORDS: liberalmedia; liberalmediabias; moonbatmedia; postintelligencer; schadenfreude; seattle; washington
Navigation: use the links below to view more comments.
first 1-2021-24 next last

1 posted on 06/30/2005 4:26:46 PM PDT by KentTrappedInLiberalSeattle
[ Post Reply | Private Reply | View Replies]

Comment #2 Removed by Moderator

To: KentTrappedInLiberalSeattle

bump


3 posted on 06/30/2005 4:35:44 PM PDT by Sonny M ("oderint dum metuant")
[ Post Reply | Private Reply | To 1 | View Replies]

To: Baynative

Life is good, sometimes. :)


4 posted on 06/30/2005 4:37:35 PM PDT by KentTrappedInLiberalSeattle ("As a conservative site, Free Republic is pro-G-d, PRO-LIFE..." -- FR founder Jim Robinson)
[ Post Reply | Private Reply | To 2 | View Replies]

To: KentTrappedInLiberalSeattle
Just once, I'd like to see some wealthy conservative buy a major daily newspaper, and make it unabashedly conservative.

And just see what happens.

Granted, it's probably not the wisest business idea one could come up with...but you gotta wonder: would it work?

I mean, look at what Fox News did to CNN just by being centrist-to-slightly-conservative.

5 posted on 06/30/2005 4:38:36 PM PDT by B Knotts
[ Post Reply | Private Reply | To 1 | View Replies]

To: KentTrappedInLiberalSeattle
"...in the ongoing story of Seattle as a two-newspaper town,"

Yeah, Seattle is a two paper town just like Madistan is a two paper town, in both towns the two papers are owned by the same people and both papers are liberal. One comes out in the morning, the other in the afternoon, other than that it is a distinction without a difference.

6 posted on 06/30/2005 4:42:10 PM PDT by gorush (Exterminate the Moops!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Temple Owl

ping


7 posted on 06/30/2005 4:43:23 PM PDT by Tribune7
[ Post Reply | Private Reply | To 1 | View Replies]

To: B Knotts

They are trying it in Philly with the Evening Bulletin. I don't think it's working but that has more to do with news content and resources than politics.


8 posted on 06/30/2005 4:44:28 PM PDT by Tribune7
[ Post Reply | Private Reply | To 5 | View Replies]

To: KentTrappedInLiberalSeattle; Baynative; Libertina; Vicki; doug from upland; bert

This is good. Bulldoze the rubble, lower the 'noise' in the area -- and clear the way for just such a Conservative paper.

People are hungry for the truth.


9 posted on 06/30/2005 4:50:56 PM PDT by The Spirit Of Allegiance (SAVE THE BRAINFOREST! Boycott the RED Dead Tree Media & NUKE the DNC Class Action Temper Tantrum!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Blurblogger

Truth? They can't handle the truth in Seattle.


10 posted on 06/30/2005 4:51:57 PM PDT by doug from upland (The Hillary documentary is coming)
[ Post Reply | Private Reply | To 9 | View Replies]

To: KentTrappedInLiberalSeattle

LA used to have 2 newspapers until a "forever" strike closed one of them down. Wonder where those guys are working?


11 posted on 06/30/2005 4:55:03 PM PDT by Mister Baredog ((Minuteman at heart, couch potato in reality))
[ Post Reply | Private Reply | To 1 | View Replies]

To: KentTrappedInLiberalSeattle

The PI makes the Stranger seem respectable (and conservative) by comparison!


12 posted on 06/30/2005 5:01:52 PM PDT by pissant
[ Post Reply | Private Reply | To 1 | View Replies]

To: KentTrappedInLiberalSeattle

Seattle Post-Intelligencer

........Seattle Times


13 posted on 06/30/2005 5:26:40 PM PDT by XR7
[ Post Reply | Private Reply | To 1 | View Replies]

To: Baynative
I would love to have been in the room with the editorial staff when they heard the news! Last year about this time, I had the displeasure of accompanying a conservative legislative candidate into the PI editorial review chamber.

They were so sickeningly "progressive" their bodies have begun the metamorphosis into a new species. Everyone of their foreheads sloped to the left and they had terrible vision, damnedest thing I've ever seen. Scary.
14 posted on 06/30/2005 5:37:44 PM PDT by bigfootbob
[ Post Reply | Private Reply | To 2 | View Replies]

To: bigfootbob
They were so sickeningly "progressive" their bodies have begun the metamorphosis into a new species. Everyone of their foreheads sloped to the left


15 posted on 06/30/2005 5:46:44 PM PDT by KentTrappedInLiberalSeattle ("As a conservative site, Free Republic is pro-G-d, PRO-LIFE..." -- FR founder Jim Robinson)
[ Post Reply | Private Reply | To 14 | View Replies]

To: Baynative; Bluegrass Conservative; RonPaulLives
*whisle* Over here...the Newspaper Preservation Act of 1970. The law was designed to maintain multiple editorial voices in markets that might not otherwise support more than one major newspaper...and we're still stuck w/ LHL & LCJ.
16 posted on 06/30/2005 6:31:01 PM PDT by skinkinthegrass (Just because you're paranoid, doesn't mean they aren't out to get you :^)
[ Post Reply | Private Reply | To 2 | View Replies]

To: pissant

You're right, The Seattle Times is conservative compared to the PI. Also, the Times attorneys are conservative compared to the PI attorneys.


17 posted on 06/30/2005 8:07:13 PM PDT by angry elephant (Endangered species in Seattle)
[ Post Reply | Private Reply | To 12 | View Replies]

To: B Knotts

He's called Rupert Murdoch. The paper is called "The New York Post"


18 posted on 06/30/2005 8:20:46 PM PDT by PzLdr ("The Emperor is not as forgiving as I am" - Darth Vader)
[ Post Reply | Private Reply | To 5 | View Replies]

To: KentTrappedInLiberalSeattle
It dawned on me the other day when I picked up the News Tribune that I already knew most of everything in it. Other than local news I get all the news on the internet.

Newspapers are becoming obsolete. They no longer have a "captured" audience.

19 posted on 06/30/2005 8:23:51 PM PDT by Vicki (Washington State where there are no rules or standards in elections.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Vicki
Newspapers are becoming obsolete... "Dead Tree" Media. :/
20 posted on 06/30/2005 8:36:31 PM PDT by skinkinthegrass (Just because you're paranoid, doesn't mean they aren't out to get you :^)
[ Post Reply | Private Reply | To 19 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-24 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson