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SEATTLE -- A Washington state judge has rejected a lawsuit aimed at undoing a deal to build a new professional basketball and hockey arena in Seattle -- a key part of plans to bring the NBA back to town.

King County Superior Court Judge Douglass North held that the agreement between the city of Seattle, King County and an investment group led by hedge fund manager Chris Hansen does not violate state environmental law.

The International Longshore and Warehouse Union is concerned that adding a third stadium to the area south of downtown would choke freight traffic and cost jobs. The union sued, saying an environmental review should have preceded any agreement.

The judge disagreed, saying the agreement technically set out a framework for a future deal, but didn't commit the city or King County to building an arena south of downtown.

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