J. B. Watkins v. Petro-Search, Inc.

TATE, Circuit Judge:

This is a Texas diversity case. This litigation involves the interpretation of a letter agreement, including a determination as to whether it is ambiguous so as to permit extrinsic evidence in aid of its interpretation. By the letter agreement, the defendant (“Petro-Search”)’s predecessor in title had agreed to “maintain” a salt-water disposal well owned by the plaintiff Watkins. This litigation resulted when the salt-water well failed and became unrepairable. The district court rejected the plaintiff Watkins’ contention that, under the terms of the agreement, the…