Transamerican Natural Gas Corp. v. Zapata Partnership, Ltd. (In re Fender)

REYNALDO G. GARZA, Circuit Judge:

TransAmerican Natural Gas Corporation appeals the bankruptcy and district courts’ interpretation of a settlement agreement between it and Zapata Partnership, LTD. We AFFIRM the bankruptcy court in all respects, except we REVERSE the bankruptcy court’s conclusion that TransAmerican owed Zapata a duty of good faith and fair dealing, and the amount of attorneys’ fees it awarded Zapata. If the bankruptcy court based any of Zapata’s damages on breach of the duty of good faith and fair dealing, then we REMAND to reduce Zapata’s damage award accordingly. Finally, we…