The ruling on Wednesday could lead to a new trial on her claim that she was improperly ousted from the show.
City News Service reports that Superior Court Judge Michael Stern overturned an earlier ruling dismissing the suit.
Sheridan claims she was fired after complaining that series creator Marc Cherry struck her on set. A jury deadlocked 8-4 in her favor in 2012.
Cherry has denied the claim and been dismissed from the legal action. The show's producer, Touchstone Television Productions LLC, also has denied the allegation.
Sheridan's lawyer David Crochetiere says he is pleased with the ruling and believes it will allow the actress to have her day in court.
Touchstone attorney Adam Levin declined comment on the development.