The 2nd US Circuit Court of Appeals ruled in favour of two small law firms in their bid to overturn an earlier judgment forcing them to cough up $24,000 to cover legal fees for the New York-based white shoe practice.
Abused discretion
According to a Reuters news agency report, the appeal court found that the lower level had ‘abused its discretion’ in an earlier decision by imposing a costs order on three-partner Virginia-based Lankford & Reed, and a 25-lawyer firm in Vermont, Langrock Sperry & Wool.
The report says the dispute dates from September last year when the two firms were ordered to pay a sanction to Cleary for filing court lawsuit papers four days late.
Reuters points out that Cleary has subsequently returned the cash to the two firms, although the firm did not comment on the appeal court ruling.
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