[Update via @Jordan Miller]: Earlier this month, the State of California Court of Appeals, Second Appellate District, REVERSED and REMANDED a ruling made by Britney's conservatorship judge, Brenda Penny, where she denied the right for another conservatee to pursue claims of fraud (extrinsic fraud due to misrepresentation of facts) against their conservator.
The Second Appellate District reversed Brenda Penny's decision so that the conservatee could pursue recovering funds from their conservator. They found Penny's ruling was based on the wrong legal standard. In other words, she misrepresented what the actual law states, thus she "abused her discretion," as they note in their filing.
This is important because it sets a precedent for Britney's case - Penny can't put blame on Britney in a similar scenario of alleged financial fraud. It also just looks bad.
Penny has, in my opinion, abused her power in Britney's ongoing case. However, she has a chance to make things right at the hearing on September 29th.
Court docs via Christopher Melcher
Information via cbb8822 and DVWoollen on Twitter