The State Appellate Court panel has rejected the Empire State Development Corp.’s motion to dismiss the Atlantic Yards eminent domain lawsuit, filed against ESDC by nine property owners and tenants with properties in the footprint of Forest City Ratner’s Atlantic Yards project. Bruce Ratner, chairman of the development company, recently said he plans to break ground on the project in December, but cannot do so without seizing the land through eminent domain. The lawsuit says it’s illegal for the state to use eminent domain to seize private homes and businesses. The court has given the ESDC until Oct. 15 to file its answer to the petitioners’ complaint, and the petitioners will then file a responding brief in January 2009, according to normal briefing schedules. TRD