Clash over Unpaid Settlement Agreement Remanded to Texas State Court

BEAUMONT, Texas - A federal court in Texas has said that it will not hear a dispute over an unpaid settlement agreement that was removed from state court when one of the defendants filed for Chapter 11 bankruptcy protection. Broyles, et al. v. U.S. Gypsum Co. and Union Carbide Corp., No. 1:00cv868 (E.D. Texas).

The U.S. District Court for the Eastern District of Texas said in its July 6 opinion that because the plaintiffs' case met all the requirements necessary to invoke mandatory abstention, the case should be remanded to the Texas state court "from whence it came."

"This case …