Questions Regarding Application of Special Facts Doctrine Preclude Summary Judgment

On November 24, 2020, the First Department issued a decision in Sports Tech. Applications, Inc. v. MLB Advanced Media, L.P., 2020 NY Slip Op. 06973, holding that questions of fact regarding the application of the special facts doctrine precluded summary judgment, explaining:

Plaintiff also raised issues of fact as to its fraud claims. Although there is insufficient evidence that defendant made false or misleading statements, there are triable issues regarding whether defendant had a duty to disclose that it had granted an exclusive license to another company. The 'special facts doctrine holds that absent a fiduciary relationship between parties, there is nonetheless a duty to disclose when one party's superior knowledge of essential facts renders a transaction without disclosure inherently unfair. The essential facts must not have been discoverable through the exercise of ordinary intelligence. Based on the circumstances of this case, there are disputed issues of fact as to whether the special facts doctrine applies to plaintiff's allegation that it did not know about the exclusive license and that, if it had known, it would not have entered into a contract with defendant.

(Internal quotations and citations omitted).

Commercial litigation frequently involves fraud-based claims. Contact Schlam Stone & Dolan partner John Lundin at jlundin@schlamstone.com if you or a client think you have been defrauded, or if someone has accused you or a client of defrauding them.