Marsh Investment Corporation v. John A. Langford, Pontchartrain State Bank, Defendant/third-Party v. Eunice K. Langford, Third-Party

GEE, Circuit Judge:

The facts of this case are set out in detail at 721 F.2d 1011. In brief, the appellant challenges, on grounds of fraud, a settlement agreement that it entered into with one of the appellees. The question presented is whether the appellant has waived its claim for recission of the fraudulently-induced settlement agreement through its negligence.

Title XVII of Book III of the Louisiana Civil Code, “Of Transaction or Compromise,” contains 13 articles that specifically govern settlement agreements. Article 3071 provides, in pertinent part, that

A transaction or compromise is an…