Here's an update between the two parties over the KeyArena lease agreement.

The court battle between the City of Seattle and the Seattle SuperSonics continued this week.
On Monday the team filed a motion to stay the city’s lawsuit against the Sonics, seeking King County Superior Court Judge Harry McCarthy to permit the disagreement between the two groups over the KeyArena lease to be decided by arbitration.
In its motion the team argued that language in the lease agreement regarding arbitration is ambiguous. Further, Washington case law points to a preference for arbitration over court decisions.
The Sonics motion set a hearing for Thursday without oral arguments.
As required by the motion, the city filed a cross-motion in response asking the court to enforce language in KeyArena lease that states a specific performance requirement that the team play all of its home games in KeyArena until Sept. 30, 2010 must be decided in court, according to the city’s interpretation of the lease.
The city also requested oral arguments on the issue, with a new hearing date of Oct. 10.
McCarthy now must make a ruling on the two motions, deciding whether to allow oral arguments as the city requests, or no oral arguments as the Sonics’ motion seeks.
McCarthy could rule by the team’s Thursday request for a hearing date, or McCarthy could wait until the Oct. 10th date requested by the city to make his decision.
“We’re just in the wait-and-see mode and waiting on the judge’s ruling,” said Ruth Bowman, a spokesperson for the Seattle City Attorney’s office. “We’re hoping he will grant the city an oral argument.”
Bowman said the city requested oral arguments in order to respond to questions McCarthy could have about the case in person.
“We believe we have a strong case and we want to go in front of a judge and argue our case,” Bowman said.