Four years ago, Lois Goodman was charged with murdering her husband after he was found dead in their Woodland Hills home.
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Goodman's defense argued her 80-year-old husband Alan fell down a set of stair and landed on a coffee mug.
But investigators say his injuries - more than a dozen cuts and one ear nearly severed - were inconsistent with a fall.
Goodman said she had dropped her husband off at home that day and returned at night to find him dead.
Prosecutors later dropped the charges.
Goodman then sued the LAPD for false arrest and malicious prosecution. But a judge determined she didn't have enough evidence to back up her claims.
On Thursday, an appeals court heard arguments in that case.
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Goodman and her attorneys say investigators known she had nothing to do with her husband's death - but purposely humiliated her by arresting her in New York where she was working at the US Open, then bringing her in handcuffs in front of news cameras.
Attorneys for the city say evidence pointed toward her, but they acknowledged the case was entirely circumstantial.
The appeals court is expected to issue its opinion in the next two to three months. Goodman's attorneys wouldn't say how much in damages they would be seeking if the lawsuit is allowed to move forward.