The decision by Common Pleas Court Judge Patricia McInerney rejects one side's effort to have the case heard in Delaware. The Inquirer's parent company is incorporated there.
The judge must now weigh the fates of Publisher Bob Hall and Editor Bill Marimow, whose jobs are in limbo.
Newspaper co-owners Lewis Katz and H.F. "Gerry" Lenfest say the publisher had no right to fire Marimow last month. They say Hall's contract expired in August.
But Hall has support from rival owner George Norcross, a powerful New Jersey Democrat and insurance magnate.
McInerney ruled Thursday that the case belongs in the jurisdiction where the alleged contract violation occurred.
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