The 5th U.S. Circuit Court of Appeals heard arguments Aug. 3 regarding whether a federal judge had the authority to level a $10,000 sanction against a Dallas lawyer for acting in bad faith in a case that went to arbitration.

Positive Software Solutions Inc. v. Ophelia F. Camiña, the appeal of the sanction order, involves U.S. District Judge David Godbey’s sanction of Camiña, a partner in the Dallas office of Susman Godfrey, for her actions as a defense attorney in Positive Software Solutions v. New Century Mortgage Corp. — a contentious software license infringement suit filed in Godbey’s Dallas court in 2003.