Also known as:fact of consequence · facts of a consequence · material facts
Written by attorneys · grounded in primary & secondary sources — see below
A fact that bears on an element of a claim, defense, or other issue that the substantive law makes determinative in the action. Relevance under Federal Rule of Evidence 401 requires both that the evidence tend to make the fact more or less probable and that the fact itself qualify as one of consequence.
Sources & Authorities
How it applies
Common Examples
6
Director Opportunity Disclosure
Farid Farahani, a corporate officer, learned of a profitable real-estate venture through his board position. He presented the deal to the board with only a brief oral summary that omitted the purchase price and his family tie to the seller. Shareholders later challenged the transaction. Evidence that the omitted price and relationship details would have altered the board's decision qualifies as facts of consequence because they determine whether the prior-disclosure requirement under the statute was satisfied.
Ex Parte Tribunal Disclosure
Faith Fitzgerald represented a client in an ex parte hearing seeking a temporary restraining order. She knew the opposing party had already filed a competing application in another court but withheld that information. The tribunal later learned of the parallel filing. Evidence of the parallel filing is a fact of consequence because it directly affects whether the lawyer fulfilled the duty to supply all material facts needed for an informed decision.
Select any source to read its text and confirm it supports the definition.
Statutes
Federal Rules
Uniform Acts
Model Codes
Restatements
Casebooks
Partnership Loyalty Ratification
Flora Ford and Forrest Falconer formed a partnership to develop software. Flora accepted a paid advisory role with a direct competitor without telling Forrest. After discovery, the partners held a meeting at which Flora gave only a partial account of the arrangement. Evidence that Forrest would have withheld consent had he known the compensation and competitive overlap constitutes facts of consequence because they decide whether the ratification satisfied the full-disclosure prerequisite.
Trustee Breach Ratification
Francesca Fowler served as trustee of a family trust. She sold trust property to a relative at below-market value. Beneficiary Farah Fox later signed a release after receiving only a summary statement that omitted the sale price and the family relationship. Evidence that Fox remained unaware of the below-market terms and conflict is a fact of consequence because it determines whether the release is valid under the statute.
Trustee Information Duty
Fusion Power held assets in trust for several beneficiaries. The trustee delayed six months before supplying a beneficiary's written request for the current investment policy statement. Evidence that the policy statement contained changes directly affecting distribution rights qualifies as facts of consequence because those changes decide whether the trustee's response time violated the duty to keep beneficiaries reasonably informed.
Summary Judgment Materiality
Falcon Dynamics moved for summary judgment in a contract dispute. The parties disputed whether an executive's undisclosed side deal affected the corporation's decision to enter the main agreement. Evidence that the side deal would have caused the board to reject the contract is a fact of consequence because it determines whether a genuine issue of material fact exists that must be tried.
Anderson v. Liberty Lobby, Inc.477 U.S. 242, 250 (1986)
Common questions
Frequently Asked
3
How does a court identify which facts qualify as facts of consequence?+
A court looks to the substantive law governing the claim or defense. Only facts that the governing law treats as elements or defenses count. Evidence that does not bear on any such fact is irrelevant even if it seems intuitively important.
Supporting sources
Can evidence be excluded even if it concerns a fact of consequence?+
Yes. Relevance is only the threshold. The evidence may still be excluded under Rule 403 if its probative value is substantially outweighed by risks of unfair prejudice, confusion, or delay.
Does the same fact of consequence analysis apply in both civil and criminal cases?+
Yes. The definition in Rule 401(b) is the same. The substantive law of the particular claim or crime simply supplies the list of facts that matter.
12 U.S. 110 (1814)Criminal Procedure
…of the Court; Story, J., dissenting. All the Judges present. Majority opinion Opinion of Chief Justice Marshall The material facts in this case are these: The Emulous owned by John Delano and others citizens of the United States, was chartered to a company carrying on trade in Great Britain, one of whom was an…