MILWAUKEE - A judge has dismissed one count in a lawsuit by Shorewest Realtors Inc. which contends the Milwaukee Journal Sentinel misled it and other advertisers about its circulation figures, but he has allowed the case to move ahead on two other counts.

Milwaukee County Circuit Court Judge Richard J. Sankovitz dismissed Monday a count that accused the Journal Sentinel of breach of contract and breach of its obligations of good faith and fair dealing.

The Journal Sentinel had argued that its advertising contract with Shorewest did not make any reference to the newspaper circulating a particular number of papers.

But Sankovitz said a portion of the lawsuit contending violation of the Wisconsin Deceptive Practice Act could proceed.

Shorewest contends in that part of the case that the Journal Sentinel had made multiple public representations of false circulation figures, which were intended to generate advertising customers.

The judge also said the part of the lawsuit which alleges the Journal Sentinel received "unjust enrichment" because advertising rates were based on artificially inflated circulation rates can move forward.

The suit contends the newspaper deliberately overstated circulation since 1996 and used the "artificially inflated rates to surreptitiously overcharge" the home-seller for advertising.

The lawsuit asks that any money wrongfully collected during that period be refunded to Shorewest, its agents and other advertisers, but it does not specify an amount.

Journal Sentinel publisher Elizabeth Brenner has described the lawsuit as without merit, and said the paper would fight it vigorously.