Texas City Cleared To Sue AEP Unit Over Plant Deal

Law360, New York (July 18, 2011, 7:03 PM EDT) -- A Texas appeals court on Friday ruled that a release agreement between the city of Brownsville and AEP Texas Central Co. signed before the city bought TCC's share in a power plant did not release TCC from sale-related claims.

The Court of Appeals for the Fifth District of Texas reversed a trial court ruling that the language of a Feb. 12, 2007, release agreement barred all of the city's claims against TCC, a subsidiary of American Electric Power Co. Inc.

In its motion for summary judgment,...
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