Federal Deposit Insurance Corporation, Petitioner v. Willie R. Coleman and W. Dwayne Powell, Respondents

Summary

The Texas Supreme Court held that a secured creditor does not owe a guarantor a duty of good faith or fair dealing to promptly foreclose on collateral, and therefore affirmed the trial court's summary judgment in favor of the FDIC. The Court rejected claims of a UCC‑based duty, a Texas common‑law duty, and a discharge under UCC §3.606. Justice MAUZY dissented, arguing that a duty of commercial reasonableness exists and should be decided by a jury.