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PHOENIX -- An Arizona court's ruling said a Connecticut law firm whose lawyers aren't admitted to practice law in Arizona can be sued in the state over work done for Arizona clients.

Pullmon & Comley for $50,000 had provided Arizona investors with a letter saying a tax shelter was allowed under federal tax law.

However, the IRS disallowed losses claimed by the investors, resulting in a sizable tax bill for them.

Investors alleged racketeering and other wrongdoing in a suit, but a judge ruled that Arizona courts didn't have jurisdiction.

The Court of Appeals' ruling Thursday said the firm can be sued in Arizona and revives the lawsuit.

The ruling said the firm should have expected that taking on Arizona clients would make it subject to the jurisdiction of Arizona courts.

Associated Press,

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