According to The Associated Press, The Michigan Court of Appeals on Friday upheld a lower court's rulings in a lawsuit that TED NUGENT filed against a music festival for canceling a concert after the rock star made what some called racist remarks.

Muskegon Summer Celebration officials canceled the concert after Nugent, a Detroit native who now lives in Crawford, Texas, used a slur offensive to blacks during a live interview on Denver radio station KRFX-FM in May 2003.

Festival organizers announced the cancellation of the planned June 30, 2003, show by saying in a news release that "any use of potentially offensive racial terms such as those attributed recently to Ted Nugent do not reflect the spirit of Muskegon nor the Summer Celebration."

Nugent and his band sued the festival for libel, slander and breach of contract. A judge in the Muskegon County Circuit Court dismissed all of the allegations except for breach of contract, which was heard by a jury.

During the trial, Nugent testified that he used the offensive word while quoting a black Motown musician's compliment to a then-teenage Nugent in reference to his guitar skills.

The jury found in Nugent's favor, awarding him $80,000 for breach of contract and $20,000 in lost merchandise sales.

The trial judge reduced the amount by $20,000 because had Nugent played the concert he would have had to pay his agent and manager 25 percent. The judge also refused to order that Nugent be reimbursed for legal costs such as trial transcripts and witness depositions.

Nugent appealed the reduced damage award and the dismissals of his other claims.