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FIRST NATIONAL BANK v. TRANS TERRA CORP.

Nos. 97-10167, 97-10914.

142 F.3d 802 (1998)

The FIRST NATIONAL BANK OF DURANT, Plaintiff-Appellant, v. TRANS TERRA CORPORATION INTERNATIONAL, et al., Defendants, Lane & Douglass and Don R. Lane, Defendants-Appellees. The FIRST NATIONAL BANK OF DURANT, Plaintiff-Appellant, v. Malcolm C. DOUGLASS, Defendant-Appellee.

United States Court of Appeals, Fifth Circuit.

May 27, 1998.

Attorney(s) appearing for the Case

Steven L. Hoard, Julie A. Lawson, Mullin, Hoard and Brown, Amarillo, TX, for Plaintiff-Appellant.

Robert H. Smith, Smith & Stone, Amarillo, TX, for Defendants-Appellees.

Before REAVLEY, JONES and BENAVIDES, Circuit Judges.

REAVLEY, Circuit Judge:

The principal issue in this diversity case is whether a lender can pursue a negligence claim against an attorney who, in the course of representing a borrower, submits an inaccurate title opinion to the lender. Because we hold that Texas law allows for such a claim under the facts presented, we reverse.

BACKGROUND

Tim Epps was the president and owner of Trans Terra Corporation International (Trans Terra). Trans Terra owned...

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