Two newspapers delay opening of JOA hearing

A long-awaited closed-door arbitration hearing that could shape the futures of both Seattle daily newspapers has been delayed one week, Seattle Times Co. President Carolyn Kelly said this morning.

The private hearing -- really a private trial -- had been scheduled to start Monday. Kelly said in an e-mail to employees this morning that it instead will start April 16.

The deadline for arbitrator Larry Jordan's ruling, which had been May 31, also will slide one week, Kelly indicated.

She attributed the delay to "some scheduling issues and complexity." No further explanation was immediately available.

The Times and The Hearst Corp., owner of the Seattle Post-Intelligencer, have been fighting over the future of their joint operating agreement (JOA) for nearly four years. Under the arrangement the papers maintain separate news and editorial operations, but the larger Times handles the business side for both in return for a larger share of the proceeds.

The Times notified Hearst in April 2003 that it had lost money according to the JOA formula for the preceding three years. That triggered an escape clause in the contract that required Hearst to either close the P-I within 18 months or let the JOA expire, leaving the P-I with no presses, warehouses, trucks or carriers.

Hearst filed a lawsuit challenging The Times' losses. Last March, facing years of litigation, the companies agreed to submit the dispute to Jordan and not appeal his ruling.

Eric Pryne: 206-464-2231 or epryne@seattletimes.com