A misconduct claim against Kane Kessler, a New York City-based business litigation law firm, was revived by the U.S. Court of Appeals for the Second Circuit on Monday, which reversed the dismissal of attorney misconduct claims under New York's judiciary law.

The panel—composed of Circuit Judges José Cabranes and Peter Hall, and U.S. Judge Timothy Stanceu of the U.S. Court of International Trade, sitting by designation—issued a summary order remanding the suit brought by Oorah Inc., a nonprofit focused on Jewish family services. Oorah's federal claims were a direct outgrowth of state suit brought against a prepaid phone card vendor, Covista Communications Inc., along with Kane Kessler, associate Gerard Schiano-Strain, and other connected parties.

Oorah's legal action alleged Covista was assisted in frustrating the nonprofit's attempts to collect commissions it was contractually owed by referring customers to Covista as part of a fundraising effort. Oorah claimed Kane Kessler and Birch Communications, which acquired Covista, helped manipulate and destroy key records and made sure assets were sold off before Oorah could enforce judgment.