99 CENTS' SUIT AGAINST CITY STANDS JUDGE REFUSES TO DISMISS.

Byline: Karen Maeshiro Staff Writer

LANCASTER - A federal judge in Los Angeles on Monday rejected a request by the city of Lancaster and its redevelopment agency to dismiss a lawsuit filed against them by the 99 Cents Only store.

The 99 Cents Only chain filed the federal lawsuit to stop the Lancaster City Council from condemning its Lancaster store so the neighboring Costco store can expand.

``We properly alleged that they had violated the U.S. Constitution. We had properly alleged there was no public purpose in the use of eminent domain against the 99 Cents Only store in favor of Costco,'' said Christopher Sutton, an attorney for the 99 Cents Only store. ``This is a victory for us. It's not the whole case. (But) it's a major step up.''

U.S. District Judge Stephen Wilson denied the two motions filed by the city, which argued that the case belonged in state court. Wilson set a trial date for next February.

An attorney for the city of Lancaster said California law has specific procedures for challenging the right of a government agency to take private property by right of eminent domain.

``It would be more appropriate to have the case heard in state court,'' Douglas Evertz said.

But the judge ruled he had jurisdiction over the case, Evertz said.

``He's a federal judge, he made a decision, and we'll have to live with it,'' Evertz said.

Sutton said Wilson ordered the city to produce correspondence between the cities of Lancaster and Palmdale and between Lancaster and Costco. The city of Lancaster has been contending that Palmdale will lure Costco away if Lancaster doesn't let it expand.

``We think it's a big lie,'' Sutton said.

Attorneys for 99 Cents Only, a 90-store chain, claim the city is trying to illegally evict the business from the Valley Central shopping center and that its actions violate the store's constitutional rights.