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

This is an action for breach of a commitment to provide financing for future real estate investments. The borrowers were to be entities that would be formed to hold each investment separately as opportunities arose. We hold that the corporate owners of those entities were third-party beneficiaries of the commitment, and that consequential damages for the lender’s breach of the commitment were foreseeable. We reverse the judgment of the court of appeals 1 and remand the case to that court for further consideration.

I

Basic Capital Management, Inc. managed publicly traded real estate investment…