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 guarantors a duty of good faith or fair dealing to foreclose promptly, affirming summary judgment for the FDIC and reversing the appellate court. Justice Hecht reasoned that neither the UCC nor Texas common law imposes such a duty, the guaranty expressly waived any requirement to exhaust collateral, and imposing a duty would be impracticable. Justice Mauzy dissented, arguing that the proper issue is a duty of commercial reasonableness and that material factual disputes require a jury.