The San Diego pension fund that was dealt a stunning defeat in its lawsuit against Amaranth Advisors said Thursday it was appealing the judge’s decision.

Earlier this week, a federal court judge in New York threw out the case brought by San Diego County Employees Retirement Association (SDCERA), saying that the pension plan was bound by Amaranth’s offering documents.

The SDCERA claimed to have lost $175 million when Amaranth’s energy fund, run by trader Brian Hunter, which lost $6 billion in 2006 on trades that went awry.

Despite disclaimers in Amaranth’s private placement memorandum that investors in the fund ran the risk of losing all their money, SDCERA Chief Executive Officer Brian White said in a statement, “None of those disclaimers advised us that Amaranth was going to break the law.”

White was referring to a $7 million fine that Amaranth paid to the Federal Energy Regulatory Commission and Commodity Futures Trading Commission in 2009 for the energy fund blow-up. The fine, however, was paid in connection with a settlement with the government agencies, rather than an administrative decision against the hedge fund firm.