In LiNiO2, the Ni3+ ions, with S=1/2 and twofold orbital degeneracy, are arranged on a trian- gular lattice. Using muon spin relaxation (MuSR) and electron spin resonance (ESR), we show that magnesium doping does not stabilize any magnetic or orbital
order, despite the absence of interplane Ni2+. A disordered, slowly fluctuating state develops below 12 K. In addition, we find that magnons are excited on the time scale of the ESR experiment. At the same time, a g factor anisotropy is observed, in agreement with $| 3z^{2}-r^{2}>$ orbital occupancy.
