The out-of-State lawyers are right as the term is normally used but in NY what that means is that your case did not settle so it has been remanded from the settlement conference calander and put back on the trial calander. The case is still in the same court... you just need to wait your turn for a trial date. You will probably have a series of pre-trial conferences in the trial part where the court will try to settle it. If that fails, it will go to trial.
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Remanded means an intermediate court sent it to a lower court. Either for substantive, jurisdictional, or procedural reasons, although it's rare the courts make the call on it's own. There must have been a mistake made somewhere along the line that the court system or a judge just figured out. Your attorney will know exactly what happened.
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