Also known as: material fact · material facts
Written by attorneys · grounded in primary & secondary sources — see below
Information that would influence the decision of a reasonable person in a given context or that substantially affects the rights or obligations of parties to a transaction or proceeding.
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Matthew Martinez sued Mercury Industries in federal court alleging wrongful termination. Mercury moved for summary judgment and argued that no genuine dispute existed over whether Martinez had received the disputed performance reviews. The court examined the record and found that the missing emails contained details about comparable employee discipline that would affect a reasonable factfinder's view of the company's stated reasons for the discharge.
Mason McCarthy, an officer of Magnolia Foods, learned of a new distribution contract that fit the company's existing product line. McCarthy presented the opportunity to the board but omitted the projected profit margins and his personal relationship with the supplier's owner. The board declined the opportunity without the omitted facts, allowing McCarthy to pursue it personally through a separate entity.
Malcolm McKinley represented Madison Meyers before an administrative tribunal and stated that Meyers had never received prior warnings about workplace safety. McKinley later discovered internal memos showing two earlier warnings but did not correct the record. The tribunal relied on the uncorrected statement when deciding the penalty phase of the proceeding.
Monica Morgan sold used manufacturing equipment to Maxwell Manufacturing. Morgan knew the press had a cracked housing that would require immediate repair but covered the crack with a temporary panel before inspection. Maxwell discovered the defect only after the sale closed and incurred substantial downtime costs.
Megan Moore and her partner in Mirage Hotels discussed a side lease with a competing chain. Moore provided only a brief oral description that omitted the lease's below-market rent and her ownership interest in the competing chain. The other partner voted to approve the transaction based on the incomplete account.
A beneficiary of a trust administered by a corporate trustee signed a release after the trustee transferred trust assets to an affiliated fund. The trustee never disclosed that the fund charged higher fees than comparable outside options or that the transfer violated the trust's investment policy. The beneficiary later sought to set aside the release.
Materiality requires that the information would affect a reasonable decision maker's conclusion on an element of a claim or defense, whereas relevance only requires any tendency to make a fact more or less probable. In summary judgment practice the court therefore asks whether a genuine dispute exists over a fact that could change the outcome under the governing substantive law.
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…the Commission under this subtitle, or to include in any evidence, books, or information so furnished any misrepresentation of a material fact, or to falsify or conceal any evidence, books, or information relevant to a certification by the Commission or an examination and audit by the Commission under this chapter; or (B) to fail…
…plaintiffs bear the ultimate burden of proof on causation, Merrell had only to point to the absence of a genuine issue of material fact
…the hypothesis that, in an open and developed securities market, the price of a company's stock is determined by the available material information regarding the company and its business. . . . Misleading statements will therefore defraud purchasers of stock even if the purchasers do not directly rely on the misstatements. . . . The…
…on standing, respondents need not prove that they are actually or imminently harmed. They need show only a "genuine issue" of material fact as to standing. Fed. Rule Civ. Proc. 56(c). This is not a heavy burden. A "genuine issue" exists so long as "the evidence is such that a reasonable jury could return a verdict for the…
…the procedural posture of the case. The California Court of Appeal’s decision was rendered on a demurrer. A demurrer admits all
Full disclosure of every fact that a reasonable partner or director would consider important in deciding whether to approve the transaction is required. A brief oral summary that omits profit margins, personal relationships, or use of partnership resources fails the standard and prevents valid ratification.
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Yes. A party who intentionally prevents the other side from learning material information through concealment is subject to the same liability as if the party had affirmatively stated the nonexistence of the concealed fact, provided the concealment causes pecuniary loss.
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The lawyer must promptly correct the false statement. Failure to do so violates the duty of candor even if the original statement was made in good faith.
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A release or ratification is invalid if the beneficiary did not know of the beneficiary's rights or of the material facts relating to the breach at the time of the consent. The trustee bears the risk that incomplete disclosure will leave the release open to later challenge.
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