BASIC CAPITAL MANAGEMENT, INC. v. DYNEX CAPITAL

No. 19-11272.

976 F.3d 585 (2020)

BASIC CAPITAL MANAGEMENT, INCORPORATED; Transcontinental Realty Investors, Incorporated; Michael J. Quilling, as Court Appointed Receiver for American Realty Trust Incorporated, Plaintiffs-Appellants, v. DYNEX CAPITAL, INCORPORATED; Dynex Commercial, Incorporated, also known as DCI Commercial Incorporated, Defendants-Appellees.

United States Court of Appeals, Fifth Circuit.

FILED October 2, 2020.


Attorney(s) appearing for the Case

Lawrence J. Friedman, Esq. , Michael D. Donohue, Esq. , Friedman & Feiger, L.L.P., Dallas, TX, Clark Bradford Will , Kilgore & Kilgore, P.L.L.C., Dallas, TX, for Plaintiff-Appellant Basic Capital Management, Incorporated.

James Robert Arnett, II , Carter Arnett, P.L.L.C., Dallas, TX, for Plaintiff-Appellant Transcontinental Realty Investors, Incorporated.

James Robert Arnett, II , Carter Arnett, P.L.L.C., Dallas, TX, Clark Bradford Will , Kilgore & Kilgore, P.L.L.C., Dallas, TX, for Plaintiff-Appellant Michael J. Quilling.

Ashley Charles Parrish, Esq. , Paul Alessio Mezzina , King & Spalding, L.L.P., Washington, DC, Edward F. Fernandes , Attorney, Christopher H. Taylor , Senior Attorney, King & Spalding, L.L.P., Austin, TX, for Defendant-Appellee Dynex Capital, Incorporated.

Jeffrey Mark Tillotson , Jonathan Robert Patton , Tillotson Law, Dallas, TX, for Defendant-Appellee Dynex Commercial, Incorporated.

Before King, Stewart, and Southwick, Circuit Judges.


After years of litigation in the Texas state courts, Plaintiffs-appellants won a $55 million judgment against Dynex Commercial, Inc. Unable to collect that judgment, Plaintiffs filed a lawsuit against Dynex Commercial, Inc. and Dynex Capital, Inc., alleging fraudulent-transfer and alter-ego claims. The district court dismissed...

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