The Commonwealth Court has ruled that under the Restatement (Second) of Torts, the doctrine of “active concealment” in the context of common-law fraud imposes liability on a party even where disclosure of information is not required by law, while fraudulent nondisclosure only applies where there is a legal duty to disclose.
In Gnagey Gas & Oil v. Pennsylvania Underground Storage Tank Indemnification Fund, a three-judge panel of the Commonwealth Court unanimously affirmed an order of the Underground Storage Tank Indemnification Board directing plaintiff Gnagey Gas & Oil Co. to pay back about $320,000 it received from the Pennsylvania Underground Storage Tank Indemnification Fund for remediation expenses after it was discovered that the company actively concealed the existence and removal of several unregistered, orphaned storage tanks and improperly billed the fund for the removal of the contaminated soil around those tanks.
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