Shortly after a Manhattan judge gutted a former hedge fund manager's potential damages against Greenberg Traurig, the judge has stayed the upcoming trial to allow for an appeal.

The 2007 case is now on at least its third appeal, promising to prolong a legal battle that has spawned unwelcome headlines for the firm for a decade. Greenberg Traurig appealed twice before to the Appellate Division, First Department.

James Melcher, 77, was seeking about $16.5 million in damages from a Section 487 attorney deceit claim against Greenberg and its former shareholder, Leslie Corwin. Melcher claims Greenberg and Corwin helped their client deceive the court after the client claimed he accidentally burned a critical document while making tea.