A state appeals court ruled against a Harris County trial court’s dismissal of a contract dispute, finding it ignored the state’s COVID-19 emergency orders when it denied a continuance in the litigation.

The underlying case involved Nicole Felt, a real estate investor who sued Jerry W. Bailey in the 61st District Court. The parties sued each other in December 2015 with Bailey making claims on a $2.65 million loan in default, while Felt sued for breach of contract.