The Attorney General's Office is appealing the decision by U.S. District Judge Dee Benson to the U.S. 10th Circuit Court of Appeals in Denver.
But the Utah Supreme Court could potentially have nullified Benson's ruling if it ruled its own decision to throw out the case last year based on a rare legal principle was binding on other courts. If the Supreme Court had decided that decision was binding, Benson may not have had jurisdiction to rule in the first place.
In Thursday's order, however, the justices bypassed that option, leaving the decision in the hands of the 10th Circuit.
The long-running court battle is over the $110 million United Effort Plan trust, which holds nearly all the land and property in the Warren Jeffs-led group's home base of Colorado City, Ariz., and Hildale, Utah.
The sect is fighting to regain control of the trust, which the state took over six years ago amid allegations of mismanagement by FLDS trustees.
The sect's three-year court fight heated up with Benson's decisions, first that the takeover was illegal and second to temporarily hand back control to the FLDS.
The latter prompted a showdown between Benson and the state court judge who had been overseeing the trust since the takeover, 3rd District Judge Denise Lindberg, over whether a court-appointed trust administrator should turn over records.
The 10th Circuit stepped in and sided with Lindberg, ruling the state should stay in control temporarily but not make any major changes to trust assets.
Also this week, the court-appointed administrator, Bruce Wisan, argued in court documents that the state of Utah should pay the outstanding bills to his firm, attorneys and others since they were last paid in 2008. The total, attorneys said, is $4.6 million.
P The state continues to be in temporary control of the United Effort Plan trust while a federal appeals court considers the case. Briefs are due in that case on July 11.