The terror threat in London isn't over yet. We're hearing that Kitson owner and Us Weekly frenemy Fraser Ross was on a British Airways flight from London, bound for Toronto, when the police boarded the plane with dogs and cleared everyone off at 12:45pm local time. Heathrow's Terminal 4 has been cleared entirely, with all passengers and staff standing in the rain in the car park. "There is some kind of suspicious bag or package on the plane or in the baggage area," we're told.

Update: Meanwhile, all suspects in London's scare are said to be in custody.

The LA Times finally jumps on this whole Us Weekly/Kitson lawsuit, revealing little new information on why Kitson's owner, Fraser Ross, is suing the tabloids. In light of the investigation into former Us Weekly editor, Jill Ishkanian, which supposes that she broke into Us Weekly's computer to see what stories they were working on, and used that information to boost her new Kitson-heavy paparazzi agency, Sunset News.

Oh, also, Ross owns Sunset News. But no matter. Even though he's being accused of stealing from them, he wants Us Weekly to stop cutting Kitson bags and signs out of photos. And in their coverage he LAT does a not great job of pressing the matter.

Federal agents in May searched the offices of Sunset Photo as well as the home of its owner, Jill Ishkanian, a former Us Weekly editor. An attorney for Sunset Photo has denied that Ishkanian did anything wrong and said she is fully cooperating with authorities. The attorney also said Ross was only an investor in Sunset and had no role in its actual operations.

Right. Like Ross' lawyer is going to say, "we want to break into Us Weekly's files, target their stories, and then sell them pictures taken by our agency and featuring our boutique."

Celebrity Boutique Sues Us Weekly, Saying Lack of Coverage Is Hurting Business [Andrew Blankstein, Los Angeles Times]
Earlier: Kitson vs. Us Weekly: The Blacklisted Bad Blood Continues

You know Kitson as the L.A. boutique that counts Nicky Hilton as both a supplier and a customer. The shop gets regular shout outs from the likes of Lindsay, Nicole, Jessica, and Paris, sealing its cultural relevance. You also know Kitson as store owned by Fraser Ross, who decided to capitalize on all the celebrity foot traffic and jump into the paparazzi business with Sunset Photo and News LLC — flanked by Jill Ishkanian, the former Us Weekly staffer now at the center of a federal investigation looking into whether she hacked her former employer's computers.

So, as you can tell, there's already bad blood between Kitson and the Wenner Media tabloid. And, as of yesterday, there's even more: Kitson filed a lawsuit against the gossip rag, alleging Janice Min & Co. violated written and oral agreements not to badmouth each other. And look at that — we've exclusively got the court documents.

Back in February, the bad blood between Kitson and Us – stemming from Ross hosting a book party for west coast exec editor Ken Baker, who supposedly didn't give enough editorial play in return – was settled with a $13,620 payment and a signed agreement between Ross and Us that the neither side was "to make, or knowingly cause to be made any statement or communication written or oral with the intention of (a) disparaging or otherwise impugnin the business or management of any of the Paries … (b) damaging the personal or business reputation of any of the parties … or (c) interfering with, impairing or disrupting the normal business operations of any of the Parties."

Turns out that was all a bunch of hooey, at least according to Kitson's lawsuit. The store claims the magazine went out of its way to crop Kitson goods out of photos it used (like a blue Kitson bag in Issue 593); listed the store's phone number (a number Us "knew or should have known is not answered") instead of its website, as is common practice for other retailers; and did not credit Kitson as the location where photos were taken that the magazine published, when it credited locations in other photos.

And Ross isn't done yet. He's also claiming Us engages in unfair business practices, allowing editors to plug their own goods (like staffer Suzanne Marchese's Fleur de Lis clothing) for free (the horror!); allowing editors to plug their own causes (like, ahem, Ken Baker's Head To Hollywood charity) without mention of the conflict of interest (double horror!); and editors demanding free merchandise from retailers under the threat that, if they don't send the goods, they'll never appear in the magazine again (triple threat, booyah!).

In the end, Kitson is assessing damages (read: lost business) at $10,000 per week. Which means Jann is gonna have to bring out the checkbook again, or Janice will have to make a little room in its "Get Insert-Celebrity-Here's Look!" pages for Kitson. (It's worth noting, meanwhile, that Kitson remains an advertiser in Us, at least as recently as the Sept. 4 Issue 603.)

After the jump: All the legal docs you've been waiting for.

Related: LA Shop Owners Want a Hand in the Paparazzi Jar

CONTINUED »