SUPERIOR COURT JUDGE Richard A. Kramer ruled Feb. 18 that a Bay Guardian predatory-pricing lawsuit may proceed against New Times Media, owner of the SF Weekly and East Bay Express.

The Bay Guardian suit, filed Oct. 19, 2004, alleges that New Times is selling or offering advertising below cost and is giving secret rebates to advertisers in violation of California predatory-pricing law. As a result, the suit contends, some advertisers have switched their business to the New Times papers and the Bay Guardian has lost other advertising opportunities. The suit alleges that, through such practices, New Times is attempting to put the Bay Guardian out of business so that it can raise advertising rates "to monopoly profit levels" (see "Bay Guardian Sues New Times Chain for Predatory Pricing," 10/20/04).

Attorney Michael A. Sands, representing New Times, argued that the Bay Guardian did not cite any specifics to back up the allegations in its complaint. However, Kramer held that the complaint adequately stated the Bay Guardian's unfair-business-practices claims and that the suit could proceed.

Kramer gave New Times 30 days to answer the complaint. He noted that 30 days would allow New Times sufficient time to appeal should it disagree with his ruling. If New Times doesn't appeal, it must file an answer to the Bay Guardian complaint and at that time will have the opportunity to file a cross-complaint.

The Bay Guardian is represented by E. Craig Moody and Richard P. Hill, of San Francisco law firm Moody and Hill. New Times is represented by Sands and Laurence F. Pulgram, of Mountain View firm Fenwick and West. Pulgram is from the firm's San Francisco office. Steven P. Suskin, an attorney from Phoenix, Ariz., representing New Times, was present in the courtroom but did not make an appearance of record. New Times, headquartered in Phoenix, owns a chain of 11 alternative papers in major markets and a national advertising rep firm called Ruxton.

Kramer outlined the structure he wants the parties to use to define, refine, and prioritize the case issues and to agree on an order protecting information they will exchange in the discovery process. The next case-management hearing is set for April 19.