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Texaco and Pennzoil can resume their legal feud.

U.S. Bankruptcy Judge Howard Schwartzberg signed an order in White Plains, N.Y., authorizing the two companies to pursue their historic $10.3-billion battle in Texas courts over the disputed purchase of Getty Oil Co. When Texaco filed for protection under Chapter 11 of the U.S. Bankruptcy Code on April 12, saying it was unable to reach agreement with Pennzoil, all litigation was immediately put on hold. The judge’s order was considered routine since both companies favor resuming their legal dispute.

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