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By Joe Flint 

The legal battle for future control over Sumner Redstone's $40 billion media empire appears to be headed to trial.

A Massachusetts judge on Thursday denied a motion to dismiss a lawsuit brought by Viacom Inc. Chairman and Chief Executive Philippe Dauman and board member George Abrams that seeks to reinstate the pair after they were ousted from the board of National Amusements Inc., the company through which Mr. Redstone controls Viacom and CBS Corp. They also want to be reinstated to a trust that was set up to oversee Mr. Redstone's holdings upon his death or incapacitation.

Messrs. Dauman and Abrams have charged that 93-year-old Mr. Redstone no longer has the mental capacity to make those decisions and that he is being manipulated by his daughter Shari Redstone, who is Viacom's vice chair as well as a member of both the National Amusements board and the trust. Ms. Redstone has denied those allegations.

While Messrs. Dauman and Abrams can claim victory in not having their case dismissed, their request for an immediate medical exam of Mr. Redstone was denied.

In his 76-page ruling, Judge George Phelan of the Norfolk County Probate and Family Court said the case should proceed and that a speedy trial could begin in October. Judge Phelan said he would review medical records of Mr. Redstone from a previous trial in California that also challenged his competence and ordered that Mr. Redstone's medical records dating back to the start of 2015 be turned over by Aug. 15.

The previous California case, in which Mr. Redstone's former companion Manuela Herzer sued in an effort to remain his health-care agent, was dismissed, but the judge specifically didn't rule on Mr. Redstone's competence. Instead, he only said that Mr. Redstone was convincing in his desire to have Ms. Herzer out of his life.

Judge Phelan also determined Thursday that the current case should be heard in Massachusetts where the trust is based. That is a blow to Mr. Redstone's camp, which was attempting to have the legal battle moved to California, where the billionaire resides.

Mike Lawrence, a spokesman for Mr. Redstone, called the case a "disingenuous, self-interested effort by Philippe Dauman and George Abrams to hold on to their power as trustees and National Amusements directors, in the hope that this would enable them to preserve their richly compensated positions at Viacom despite their dismal performance."

Mr. Redstone's legal team has said that ultimately neither the mogul's current health nor his daughter's alleged influence are relevant to the removal of the two men. The attorneys have argued that the ouster of Messrs. Dauman and Abrams will stand, regardless, because a majority of those slated to be on the seven-member trust have indicated they would approve the removals if Mr. Redstone is deemed incapacitated.

"We are grateful that Judge Phelan's thoughtful opinion removes yet another of defendants' efforts to block an investigation into the merits and, in particular, an independent determination of Mr. Redstone's capacity and the question of undue influence," a representative for Messrs. Dauman and Abrams said in a statement. "We welcome the opportunity to prove the facts at trial."

The fight for control over the media empire that encompasses assets like Paramount Pictures, MTV and Nickelodeon has spanned multiple states, including a separate lawsuit in Delaware. Viacom's lead independent director Frederic Salerno is fighting an attempt by National Amusements to remove himself and four other directors, including Mr. Dauman, from Viacom's board. A hearing in that case is scheduled for Friday.

Write to Joe Flint at joe.flint@wsj.com

(END) Dow Jones Newswires

July 29, 2016 02:48 ET (06:48 GMT)

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