The Michigan Department of Corrections is charged with sending a problematic prisoner to an Upper Peninsula prison to get rid of him.
52-year-old Kevin King had been helping other prisoners with legal complaints against the system.
King had been personally awarded nearly $1,500 for violation of his First Amendment rights.
The convicted killer was then transferred from his Muskegon prison to a U.P. prison with a higher security classification for nine months.
An appeals court has ordered a federal judge to revisit the case which could lead to further punitive damages against the state for the treatment of King.