Justice Carolyn Demarest

In an action brought by plaintiff Abraham Rosenberg on behalf of C&B Enterprises USA for conversion, trespass, and private nuisance, among other things, defendant/third-party plaintiff Koegel alleged that she cofounded C&B to purchase and build an apartment building in Brooklyn. Third-party defendant Mark Rosenberg (Mark) moved to dismiss the five causes of action brought by Koegel against him, both individually and derivatively on behalf of C&B. Koegel alleged that Mark exploited her trust and stole her investment in order to satisfy his business and personal debts. Mark contended that Koegel’s fraud claims must be dismissed because she failed to plead the element of justifiable reliance, and also because she failed to satisfy the stringent pleading requirement of CPLR 3016(b). The court concluded that Koegel sufficiently alleged a cause of action for fraudulent concealment as her third-party complaint clearly included allegations of a fiduciary duty between her and Mark, that Mark concealed information regarding transactions that affected Koegel’s membership interest, and that Mark was required to reveal such facts.