In an April 19, 2011 decision by Justice Sherwood, the court held respondent Grynberg in contempt of court for violating the court’s prior order of April 1, 2005 enjoining him or anyone acting on his behalf from initiating or prosecuting an action in any court relating to the joint venture agreement between the parties. Grynberg had commenced an action in Colorado against the petitioners concerning the joint venture agreement. In light of the joint venture agreement’s arbitration clause, that action was stayed by the New York court pending arbitration, pursuant to CPLR § 7503(a). In connection therewith, the court issued the April 1, 2005 injunction. Following the arbitration and confirmation of an arbitration award against Grynberg, Grynberg’s wife commenced an action against the same petitioners concerning the joint venture agreement. The court held Grynberg in contempt, finding that the April 1, 2005 injunction order was broad enough to include Grynberg’s wife, who (a) specifically alleged in the Wyoming action complaint that Gynberg was her agent and that she was doing business as GCP which, the court found, had no legal existence apart from Gynberg himself; and (b) was in privity with Grynberg and was likely aware of the injunction. The court found that Grynber’s actions prejudiced the petitioners by delaying their efforts to secure the fruits of the arbitration award and requiring the expenditure of additional defenses to enforce the April 1, 2005 injunction through the contempt order.
L&R Exploration Venture v Grynberg, Sup Ct, NY County, April 19, 2009, Sherwood, J, Index No. 101646/02