A packet trace showed that multicast dns was done for this domain.
The LAG is running SLES9 SP3 as the operating system.
Add the following entry in the file/etc/host.conf
This option, introduced in SLES9 Service Pack 1, disables the special handling of the top-level domain .local by the resolver.
It instructs the resolver not to use multicast DNS, but to use the more common unicast DNS instead.
Once this setting was done resolving of the ".local" domain was possible again.