A unanimous three-judge panel of the N.C. Court of Appeals ruled this morning against Taylortown in the lawsuit pitting the town against former police chief Timothy Blakely. Appellate judges upheld most of a lower-court ruling favoring Blakely. The only part of the appellate decision that favors the town is a ruling that a judgment of more than $100,000 for Blakely should be reduced by about $5,800.