Logourl black
From our private database of 14,000+ case briefs...

Basic Capital Management, Inc. v. Dynex Commercial, Inc.

Supreme Court of Texas
348 S.W.3d 894 (Tex. 2011)


Basic Capital Management, Inc. (Basic) (plaintiff) manages and owns stock in real estate investment trusts. Two such trusts are American Realty Trust, Inc. (ART) and Transcontinental Realty Investors, Inc. (TCI). ART and TCI hold investment property through single-asset, bankruptcy-remote entities (SABREs). TCI entered a loan agreement (the Agreement) with Dynex Commercial, Inc. (Dynex) (defendant), a lender, wherein Dynex agreed to loan three TCI-owned SABREs $37 million for real estate investments in New Orleans. Dynex agreed to lend money only to SABREs because recovery is more easily obtained from SABREs in case of a default. Pursuant to the Agreement, Basic pledged, in a separate agreement with Dynex, to propose additional TCI- and ART-owned SABREs to borrow a total of $160 million dollars from Dynex in a two-year period (the Commitment). Dynex loaned the three TCI-owned SABREs funds for the New Orleans investments. However, once market interest rates rose, Dynex refused to provide further funding for the New Orleans investments and refused to make any additional loans pursuant to the Commitment. The defendants sued Dynex for breach of the Commitment.

Rule of Law

The rule of law is the black letter law upon which the court rested its decision.

To access this section, please start your free trial or log in.


The issue section includes the dispositive legal issue in the case phrased as a question.

To access this section, please start your free trial or log in.

Holding and Reasoning (Hecht, J.)

The holding and reasoning section includes:

  • A "yes" or "no" answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

To access this section, please start your free trial or log in.

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 204,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 14,000 briefs, keyed to 188 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.