TERRE HAUTE, Ind – The decision to throw out a lawsuit over the Powerdyne project will head to appellate court.

A U.S. District Court judge in New Jersey last month dismissed a lawsuit brought by Overseas Lease Group, finding in favor of the city and other defendants on a series of legal arguments

Now the U.S. Third District Court of Appeals says that it has opened a case involving Overseas Lease Group vs. Plocher Construction Co., the City of Terre Haute and other partners in the failed sludge-to-diesel venture.

Overseas Lease Group alleged that those receiving city contracts were required to provide kickbacks.

Mayor Duke Bennett has denied the allegation.

A hearing date has not been set.