Pro-Kennedy group loses suit on pro-Carter ethics

A three-judge panel of the US Circuit Court of Appeals for the district of Columbia Thursday dismissed a lawsuit by seven backers of Sen. Edward M. Kennedy who charged that administration officials misued federal power and money to aid President Carter's campaign.

Joseph Rauh, lawyer for the Kennedy supporters, said they would take the case to the Supreme Court. Kennedy backers filed the suit in December, claiming members of the White House staff and several Cabinet secretaries alledgedly awarded federal grants to areas whose elected officials supported Carter.