Judicial Notice Applies at ‘Any Stage’ Including Motions to Dismiss

Basic Capital Management, Inc., et al v. Dynex Cap, No. 19-11272 (5th Cir. 2020), provides a good, clear case on judicial notice and its use at “any stage” of the proceedings. Plaintiffs in the case first brought suit in 1999 in Texas state court when Dynex Commercial, Inc., failed to fulfill an agreed-upon loan commitment. The Texas Supreme Court, in 2015, entered a judgment in favor of the plaintiffs for more than $55 million. In 2017, the plaintiffs brought a new lawsuit in an effort to enforce the judgment. The district court dismissed the claims twice without prejudice and a third time with prejudice using judicial notice under the Federal Rule of Evidence 201. The plaintiffs, however, argued that Rule 201 did not apply at the motion-to-dismiss stage. The Fifth Circuit disagreed and affirmed the district court’s judgment. Read the full case for more details: http://www.ca5.uscourts.gov/opinions/pub/19/19-11272-CV0.pdf