A suit brought by the International Longshore and Warehouse Union against the building of a new arena in Seattle was dismissed by a judge on Friday.
The union said the arena would disrupt traffic at the nearby Port of Seattle.
The decision removes a potential hurdle for hedge fund manager Chris Hansen, who has an agreement to purchase the Sacramento Kings to relocate the franchise to Seattle.
If the judge had voided the arena agreement, including $200 million in public funding, Hansen's ability to get the purchase approved by the NBA would have been severely compromised.
The arena still has another legal challenge, as a taxpayer suit says the financing violates a voter-approved city ordinance that requires the city to make a profit on any public financing of a sports venue.