H. Beatty Chadwick — the Delaware County lawyer who has been jailed for more than seven years for contempt of court — suffered a major setback Tuesday when a federal appeals court reversed a decision that would have set him free.

In January, Senior U.S. District Judge Norma L. Shapiro ordered Chadwick released after concluding that there was no hope that his continued jailing would ever coerce him to comply with court orders to disclose where he hid more than $2.5 million from his ex-wife.