A New Jersey appeals court reinstated a legal malpractice suit against a law firm accused of accepting bonuses for steering its clients into arbitration of employment disputes.

A lower court ruling went too far when it dismissed the suit against Leeds, Morelli & Brown as a sanction for violation of a discovery order, the Appellate Division ruled in a suit by former Prudential employee Linda Guyden. The case was remanded for consideration of a less severe punishment of the discovery violation.