The multi-million-dollar legal battle over a pair of missing pants that put a D.C. dry cleaner out of business is headed back to court, shocking many in the dry-cleaning and legal communities.

A three-judge appellate court panel has agreed to hear an appeal of the case next month, more than a year after a judge ruled against the plaintiff, former D.C. Administrative Law Judge Roy Pearson.

Pearson sued the owners of Custom Cleaners for $67 million in 2005 after it misplaced a pair of his pants. Pearson demanded the family pay $1,000, the cost of the entire suit, according to Pearson. The family refused initially, but eventually offered him $12,000 to settle the case. Pearson refused that, but later reduced the amount of his lawsuit to $54 million.

The case ended in June, 2007, when a judge ruled against Pearson and in favor of the Chung family, which owned the cleaners. The judge also ordered Pearson to pay the Chungs' legal fees. The Chungs ended up raising money to cover legal costs.

"Now, a year later, we have a new mountain forming -- all in relation to one pair of pants," said Chris Manning, the Chungs' attorney. "We are hoping that we are victorious in appeal, but the important thing to take away is that no one wins, everyone loses in a case like this."

Pearson also lost his job as a judge. He filed a $1 million lawsuit against the District in May 2008, demanding compensation and his job back.

The lawsuit's return has many dry cleaners distraught.

"To me, it doesn't make any sense to me at all -- it's just nonsense," said Alison Lee, of Sun Cleaners.

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