By Dietrich Knauth and Tom Hals WASHINGTON (Reuters) -A U.S. appeals court let Donald Trump retain control on Thursday of California's National Guard while the state's Democratic governor proceeds with a lawsuit challenging the Republican president's use of the troops to quell protests in Los Angeles.

A panel of judges on the U.S. Court of Appeals for the 9th Circuit heard arguments on whether President Trump must return control of California National Guard to Gov. Gavin Newsom.