IN BRIEF.

VALLEY INDEX FALLS: Stocks in the Daily News/Bloomberg Index fell 0.86 to 135, led by The Walt Disney Co. of Burbank and Tekelec of Calabasas. Disney fell 4 to 103. Tekelec fell 1 15/16 to 38 1/16.

- Bloomberg News

T-BILL RATES MIXED: Interest rates on short-term Treasury securities were mixed in Monday's auction. The Treasury Department sold $7.26 billion in three-month bills at an average discount rate of 5.030 percent, up from 4.985 percent last week. An additional $7.25 billion was sold in six-month bills at an average rate of 4.990 percent, down from 5.025 percent.

- Associated Press 

JUSTICE SUES: The Justice Department sued Monday to block the $9 billion merger of defense industry titans Lockheed Martin and Northrop Grumman, claiming the combination would ``substantially lessen competition'' in the aerospace industry. U.S. District Judge Emmet Sullivan will hear the case.

- Knight Ridder Newspapers

QUAKE SUIT SETTLED: Owners of 10 office buildings damaged in the 1994 Northridge Earthquake received nearly $5.8 million to settle a lawsuit that accused their insurers of bad faith. The suit was filed against Firemen's Fund Insurance Co., Navigators Insurance Co., Westchester Surplus Lines Insurance Co., Homestead Insurance Co. and RLI Insurance Co.

- Associated Press

UNIVERSAL SUES: Universal Studios sued its insurance company Monday for refusing to pay for legal fees in another lawsuit. North Hollywood-based Reel EFX, which is trying to patent a ``tornado'' special effect, sued Universal Studios in September claiming the studio is planning to use the idea for its Florida theme park attraction ``Twister.'' Universal, which has an insurance policy with American Casualty Co. to cover such lawsuits, filed a claim with the insurer to cover the defendant's legal fees but the company refused.

- City News Service