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Caruso lost the primary to state Sen. Bill Finch by 270 votes out of 9,000 ballots cast. Caruso alleges that city election officials improperly prevented some voters from casting ballots and directed others to vote for Finch.
Testimony in Caruso's case began Wednesday and was to continue Thursday.
Judge John Blawie on Wednesday rejected the city's motion to throw out the lawsuit. City lawyers had said the lawsuit should be dismissed on procedural grounds.
"The outcome of any election is a matter of public interest," Blawie said. "To dismiss at this point favors form over substance."
Caruso's lawyers are expected to call up to 30 witnesses in an effort to overturn the election results or force a recount. He is accusing city election officials of fraud.
Blawie is also hearing a related complaint by Toyka Simmons-Cooke, who ran for a City Council seat but lost the Democratic primary by 14 votes to Richard Bonnie, the party's endorsed candidate. A recount later changed Bonnie's margin of victory to two votes.
Simmons-Cooke said mistakes were made in the recount, and she believes she won the primary by two votes.
City Democrats downplayed Blawie's refusal to dismiss Caruso's lawsuit.
"The court's action today was merely procedural and no one should be fooled into thinking this case has merit," said Cynthia King, chairwoman of the Democratic Town Committee, in a statement released by Finch's campaign.
"Chris Caruso is desperately trying to paint the Bridgeport voting system as flawed when it is not. He lost the primary far and square," King said.
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