Local malicious gossip dug up by both sides in District Court (4)
I believe the answer is:
dirt
'local malicious gossip' is the definition.
'dirt' can be an answer for 'gossip' (as in the phrase 'dish the dirt'). I am unsure of the 'local malicious' bit.
I can't explain the remainder of the clue.
Can you help me to learn more?
(Other definitions for dirt that I've seen before include "Obscenity" , "'Mud, dust or grime (4)'" , "See 26" , "Grime - or controversial retention tax" , "Muck" .)