Basic Capital Management. v. Dynex. Compare MCI

Basic Capital Management. v. Dynex. Compare MCI, 995 S.W.2d 647 (Tex. 1999) involved a utility company that sued a telephone company for damage to the utility's telephone poles. The damage occurred when the telephone company laid its fiber optic cable in a railroad right-of-way. Id. Both the telephone company and the utility company had agreements with the railroad to use the right of way, but had no agreement with each other. Id. The utility received incidental benefits from the telephone contract, because the telephone contract required the permission of third parties, like the utility company, to lay the cable. Id. The Texas Supreme Court nonetheless rejected the utility's argument that it was a third-party beneficiary: the utility was not a named as a beneficiary, and nothing in the contract demonstrated that the parties intended that the utility could sue to enforce the agreement. Id. at 651-52.