Justice David Benjamin Cohen

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Omabegho sued broker Hildreth, an employee of Corcoran Group, asserting claims for breaches of fiduciary duty of due care, and undivided loyalty, among other things. Hildreth leased out Omabegho's Southampton property to Harte tenants attesting to their reputable nature, and assuring Omabegho that defendants performed a background check. Omabegho never received one rent payment, obtaining a judgment of eviction, and learned of Harte's criminal past. The court granted dismissal of Omabegho's claim alleging defendants violated their fiduciary duty by failing to provide a thorough background check of the tenants, noting there was no specific contract detailing any duties to perform such background check by defendants. Yet, it denied dismissal of Omabegho's second cause of action for breach of fiduciary duty of undivided loyalty for failing to inform of tenants' criminal record, noting defendants specifically alleged they performed a background check on tenants, and Omabegho relied on assurances they were reputable tenants. Defendants had a duty to inform Omabegho of the result of the background check and not hide Harte's poor history. While defendants had no duty to investigate, if they had knowledge materially affecting the transaction, a duty to fully disclose existed.