An Ontario appeals court overturned an Ontario Superior Court ruling that Ford had violated the Municipal Conflict of Interest Act, the Canadian Broadcasting Corp. reported.
The allegations against Ford were brought up by Toronto resident Paul Magder after the mayor participated in a City Council vote that freed him from paying back $3,150 in funds donated to his private football foundation while the mayor was still a council member.
Before the council voted on the issue, Toronto's integrity commissioner recommended Ford repay the funds, which were donated by lobbyist and corporate donors in 2010 when he was still a council member.
Ford spoke in front of the council before the vote and then participated in it.
After the appeals court's decision was announced, Ford's brother, Councilor Doug Ford, said it was a "great day for Toronto."