A divided federal appeals court on Thursday vacated a $239,655 fee-shifting sanction imposed on a law firm and its client in a bankruptcy case, saying the judge abused her discretion.

The U.S. Court of Appeals for the Fifth Circuit split in holding that Chief U.S. Bankruptcy Judge Stacey Jernigan of the Northern District of Texas abusively slapped the sanction on attorneys of Sbaiti & Company and their client Charitable DAF Foundation in the Highland Capital Management LP bankruptcy.