An appeals court agreed Tuesday that a federal trial judge acted properly last month in declining to rule on the eligibility of tens of thousands of voters last fall in an unresolved North Carolina Supreme Court election and returning the matter to state court.

Three counts found an incumbent Democrat won a State Supreme Court race. But the Republican candidate is trying to nullify more than 60,000 votes.

Friday’s hearing marks the beginning of a new phase of arguments, after both sides spent months arguing over whether the case should be heard by state or federal courts.