FIRST OFF . . .

The California Attorney General’s office said Thursday that a preliminary inquiry into the legal dispute between the Los Angeles County Museum of Art and a foundation established by the late film producer Hal B. Wallis had found “no issues which require our assistance.” A spokesman said a preliminary review, ordered two weeks ago, had been completed and that while the litigation over the $39.6 million proceeds from an auction sale of artworks once owned by Wallis may involve possible violations of state law and regulations governing charitable institutions, state authorities have decided not to enter into the controversy for the moment. The lawsuit, now pending in state court in New York, arose after the foundation took back several Impressionist and other paintings that had been on permanent loan to the museum and auctioned them. The museum contends the auction violated provisions of written instructions by Wallis to the foundation that the paintings should stay on loan to LACMA or to another museum. The foundation believes the instructions were not binding and that the money generated by the sale is essential to carrying out the foundation’s charitable programs.