The 2nd District Court of Appeal ruled Monday that XtraJet and its owner Jeffrey Borer shouldn't have to pay the large sum to attorneys Mark Geragos and Pat Harris.
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The case was sent back to the trial judge who last March found in favor of Geragos and Harris.
Messages left for attorneys representing both sides were not immediately returned.
Borer and an associate pleaded guilty to conspiracy two years ago for videotaping Jackson and his lawyers as they flew the pop star to surrender on molestation charges.