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Appeals Court hears dispute over Frozen 4’s pledged charitable donation and whether fund reasonably relied on the promise

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Summary

The Cook Family Charitable Fund says Frozen 4 promised $50,000–$100,000 to support programming for disproportionately impacted communities and that the fund spent tens of thousands in reliance; Frozen 4 says the parties’ conduct satisfied licensing requirements and that the complaint fails under charitable-subscription law and pleading standards.

The Appeals Court heard argument in Cook Family Charitable Fund v. Frozen 4 LLC about whether allegations that a cannabis license applicant promised a donation in exchange for community-support status state viable claims for misrepresentation or charitable subscription.

Ed Daly and Elizabeth Potonova, counsel for the Cook Family Charitable Fund, said the complaint alleges a multi-step agreement beginning in mid-2019: Frozen 4 asked the fund…

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