The following excerpt is from Witte v. Lakeside Inn and Casino, 1995 WL 437939, 61 F.3d 914 (9th Cir. 1995):
With regard to the Title VII claim, the district court correctly applied Nevada law. Even when a settlement agreement disposes of a federal claim, "interpretation of a settlement agreement is governed by principles of state contract law." Botefur v. Eagle Point, Oregon, 7 F.3d 152, 156 (9th Cir. 1993). Because we have already upheld the determination that the settlement agreement was valid, the remaining question of law is whether a breach of that agreement would revive the Title VII claim. The wording of our previous decision left open the possibility that it might, but Nevada law provides otherwise in the context of this case.
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