A federal appellate court has overturned nearly $400,000 in sanctions imposed against Fort Lauderdale, Fla., employment lawyers William and Karen Amlong for bringing an allegedly frivolous sexual harassment suit against the Denny's restaurant chain. The sanctions order was issued in March 2000 by U.S. District Judge Joan Lenard in Miami against one of the top South Florida firms representing plaintiffs in employment cases. It was one of a series of stiff sanctions issued by South Florida federal judges against plaintiffs attorneys that many observers said chilled lawyers from bringing such cases in federal court. The Amlongs were representing a former female employee of Denny's, Floride Norelus, who claimed that she was repeatedly raped by her managers. In a 2-1 decision Monday, an 11th U.S.