November 04, 2015 12:40 PM

Sean Penn‘s defamation lawsuit against Empire co-creator Lee Daniels is still heating up, but it seems Penn may have just taken a small win.

According to Deadline, Daniels has withdrawn his Notice of Removal – a request he filed to have the case moved to federal court – and agreed to pay Penn’s legal fees on Tuesday.

“Having considered the arguments and authorities raised in Penn’s October 22, 2015 pre-motion letter requesting a remand and having diligently met and conferred, Daniels has agreed to withdraw his Notice of Removal, and to have this matter remanded to the Supreme Court of the State of New York,” read a letter from Daniels’ lawyers, Deadline reports.

The letter continues, “Further, the parties’ resolution includes Daniels’ payment of a confidential monetary amount to Penn consistent with the guiding principles [of the U.S. Code]”.

Penn and Daniels were expected to appear in a federal court on Nov. 10, however since the case has been moved back to state court, they will appear in a New York courtroom at a currently unknown date.

Penn filed a complaint against Daniels in September after Daniels compared the actor to Empire star Terrence Howard.

“That poor boy,” Daniels said in an interview with The Hollywood Reporter. “[Terrence] ain’t done nothing different than Marlon Brando or Sean Penn, and all of a sudden he’s some f–ing demon. That’s a sign of the time, of race, of where we are right now in America.”

Penn took issue with Daniels’ comments, filing the suit which states that “Daniels falsely equat[ed] Penn with Howard. Even though, while he has certainly had several brushes with the law, Penn (unlike Howard) has never been arrested, much less convicted, for domestic violence, as his ex-wives (including Madonna) would confirm and attest.”

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