Oct 26, 2012 11:11 AM
LOUISVILLE (AP) - A federal appeals court has overturned a $3 million judgment against a Kentucky businessman and a disbarred attorney saying a judge overstepped his bounds in granting the damages in a fraud case.
The U.S. 6th Circuit Court of Appeals on Friday upheld a decision that businessman Ronald Stone no longer owed money to Randall Scott Waldman and attorney Bruce Atherton, but concluded that U.S. District Judge John G. Heyburn II had no authority to award damages in the case.
The decision stems from a lawsuit brought by Stone against Waldman and Atherton. Heyburn ruled that Atherton illegally transferred the assets of Stone's company to Waldman. Waldman filed garnishments to collect money from Stone, who declared bankruptcy.
The appeals court upheld a decision that Stone doesn't owe Waldman any money.
(Copyright 2012 The Associated Press. All rights reserved.)