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MATTER OF BRADY, TEXAS, MUN. GAS CORP.

No. 90-8282.

936 F.2d 212 (1991)

In the Matter of BRADY, TEXAS, MUNICIPAL GAS CORPORATION, Debtor. George O. SANDERS, George H. O'Brien, and Tanbark Oil Company 1978-1, Ltd., Appellants-Cross-Appellees, v. CITY OF BRADY, Successor-in-Interest, Appellee-Cross-Appellant. In the Matter of BRADY, TEXAS, MUNICIPAL GAS CORPORATION. The CITY OF BRADY, TEXAS, Appellee-Cross-Appellant, v. George O. SANDERS, et al., Appellant-Cross-Appellee.

United States Court of Appeals, Fifth Circuit.

July 24, 1991.

Attorney(s) appearing for the Case

John W. Harris, Steven P. Shreder, Gresham, Davis, Gregory, Worthy & Moore, San Antonio, Tex., for appellants-cross-appellees.

Evelyn Biery, Fulbright & Jaworski, San Antonio, Tex., Samuel Downing McDaniel, Austin, Tex., for City of Brady, Tex.

Before THORNBERRY, JOLLY, and SMITH, Circuit Judges.

THORNBERRY, Circuit Judge:

The bankruptcy court confirmed a municipal gas corporation's plan of reorganization that rejected a farm-out agreement with the appellants but gave them the right to pursue a damage claim against the debtor for breaching the agreement. Rather than remaining in the federal court, the appellants proceeded against the debtor and its successor-in-interest in a Texas state court, which ruled that the bankruptcy court's confirmation of the debtor...

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