A federal appeals court in Washington, D.C., unanimously sided with a North Carolina cruise ship company on Tuesday, saying its $54 million contract and unfair trade practices suit against Canada can proceed in federal district court in the United States.

A three-judge panel of the U.S. Court of Appeals for the D.C. Circuit ordered additional proceedings in the suit Cruise Connections filed in November 2008 against the Royal Canadian Mounted Police and the attorney general of Canada, among other defendants. The suit was filed in the U.S. District Court for the District of Columbia.