No. C-8203.

807 S.W.2d 714 (1990)

EAGLE PROPERTIES, LTD. et al., Petitioners, v. Clarence SCHARBAUER, Jr. et al., Respondents.

Supreme Court of Texas.

Opinion Delivered March 27, 1991.

Attorney(s) appearing for the Case

James E. Ingram, San Antonio, and Clinard J. Hanby and W. James Kronzer, Houston, for petitioners.

James W. Paulsen, Houston, John H. McElhaney, Morris Harrell, Donald Colleluori and Bruce A. Budner, Dallas, John E. O'Neill and David T. Hedges, Houston, W.B. Browder, Jr., Midland, David C. Holmes, Houston, and Michael V. Powell, Dallas, for respondents.


COOK, Justice.

This court's opinion of December 19, 1990, is withdrawn and the following is substituted in its place. Petitioners' and Respondents' motions for rehearing are overruled.

This is a single cause which originated from two related cases. The first case presents us with the question of whether the doctrines of res judicata and collateral estoppel preclude a state action following the...

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