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PASSAGES: O'Donnell Headed for Court

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DENIED: Rosie O’Donnell and the publisher of her now-defunct magazine Rosie, Gruner + Jahr USA, both lost motions to have each other’s lawsuits dismissed, New York Supreme Court Justice Ira Gammerman has ruled, according to the New York Post. The case is scheduled to return to court Sept. 30, with a trial date expected to be set this fall. G+J filed a $100 million suit against the former “Queen of Nice,” 41, last September, alleging that her “bizarre and oft-times mean-spirited behavior” sunk the magazine. O’Donnell filed a $125 million countersuit, claiming that G+J undermined her authority and damaged her brand name.

ENGAGED: One of PEOPLE’s Most Beautiful People of 2003, “Unfaithful” star Diane Lane, 38, and “Mister Sterling” actor Josh Brolin, 35, who have been keeping company for the past year, became engaged over the Fourth of July weekend, a rep for Brolin has confirmed to E! News. No other details have been reported. Brolin (whose father, James, is married to Barbra Streisand) was previously married from 1989 to 1992 to actress Alice Adair, with whom he had two children, Trevor and Eden. Lane’s previous husband, from 1988-94, was “Highlander” actor Christopher Lambert, with whom she had a daughter, Eleanor.

QUOTED: “I’m still angry with myself that I turned down the role of the lawyer in ‘Chicago’ that Richard Gere then got. … Oh, how I would have loved to have showed them all what I can do one more time.” — One-time dancing star (“Saturday Night Fever”) John Travolta, 49, to Germany’s Bunte magazine

THREATENED: Lawyers Robert Langford and JoNell Thomas, representing Yun Kyeong Kwon Sung, 47, and her husband Ae Ho Kwon, 50, who stand accused of attempting to extort money from Celine Dion’s husband, Rene Angelil, say they may quit the case, reports the Associated Press. The couple, who reportedly have problems paying their legal fees, have been charged with trying to blackmail Angelil over a false rape claim. Their trial is due to begin on Aug. 25 in Las Vegas, but a change in the legal team is likely to lead to a postponement.

DIED: Author Carol Shields, 68, who won the Pulitzer Prize in 1993 for her novel “The Stone Diaries,” has died after a long battle with breast cancer, her publisher confirmed to Reuters Thursday. Shields published more than 20 books, 10 of them novels, but it was “Diaries” that brought her international success.

APPLAUDED: Former President Gerald Ford visited the House of Representatives on Wednesday and was greeted with a standing ovation and a rendition of “Happy Birthday, Mr. President,” reports The Washington Post. Ford, a former member of the House who once served as its Republican leader, turned 90 on Monday.