Court Opinion

ID: 9958713
Source: CourtListenerOpinion
Date Created: 2024-04-09 20:09:46.540268+00
Date Added: 2024-06-11T08:18:38.908057
License: Public Domain

Wind Riv. Invs., LLC v Murphy
               2024 NY Slip Op 31125(U)
                      April 2, 2024
           Supreme Court, New York County
        Docket Number: Index No. 650698/2020
                Judge: Nancy M. Bannon
Cases posted with a "30000" identifier, i.e., 2013 NY Slip
 Op 30001(U), are republished from various New York
 State and local government sources, including the New
  York State Unified Court System's eCourts Service.
 This opinion is uncorrected and not selected for official
                       publication.
                                                                                                                      INDEX NO. 650698/2020
  NYSCEF DOC. NO. 47                                                                                            RECEIVED NYSCEF: 04/02/2024

                                   SUPREME COURT OF THE STATE OF NEW YORK
                                             NEW YORK COUNTY
            PRESENT:             HON. NANCY M. BANNON                                             PART                             61M
                                                                                       Justice
            ----------------------------------------------------------------- ----------------X   INDEX NO.          650698/2020
             WIND RIVER INVESTMENTS, LLC
                                                                                                  MOTION DATE         11/17/2023
                                                         Plaintiff,
                                                                                                  MOTION SEQ. NO.         003
                                                 - V -

             JOHN J. MURPHY,                                                                        DECISION + ORDER ON
                                                                                                          MOTION
                                                         Defendant.
            ------------------------------------------------------------------- --------------X

            The following e-filed documents, listed by NYSCEF document number (Motion 003) 37, 38, 39, 40, 41,
            42,43,44,45
            were read on this motion to/for                                                        CONTEMPT

                      In this action to enforce a foreign judgment, the court (Kennedy, J.), by an order dated
            April 21, 2020, granted the plaintiff's motion for summary judgment in lieu of a complaint against
            the defendant, John J. Murphy, and directed entry of judgment in favor of the plaintiff in the
            principal sum of $542,500, plus costs, disbursements and interest from March 22, 2019. On
            September 9, 2020, the New York County Clerk entered judgment for the plaintiff and against
            the defendant in the total sum of $614,887.95. The plaintiff served the judgment with notice of
            entry on the defendant on October 4, 2021. Murphy did not satisfy the judgment. On July 18,
            2022, the plaintiff served the defendant with an information subpoena seeking, inter alia,
            documents and a deposition. The defendant failed to respond to the information subpoena.

                      The plaintiff moved, inter alia, pursuant to CPLR 5223 and 2308(b) to compel
            compliance with the information subpoena (MOT SEQ 002). By an order dated December 1,
            2022, this court granted the plaintiff's motion to the extent of directing the defendant to respond
            to the subpoena to the extent it seeks documents and a deposition within 60 days and denied
            the motion to the extent it sought costs or restraint of assets, without prejudice. The defendant
            was served a copy of the court's order on March 7, 2023, by "nail and mail" service per CPLR
            308(4). The defendant failed to comply with the order.

             650698/2020 WIND RIVER INVESTMENTS, LLC vs. MURPHY, JR., JOHN J.                                         Page 1 of4
             Motion No. 003

                                                                            1 of 4
[* 1]
                                                                                                    INDEX NO. 650698/2020
  NYSCEF DOC. NO. 47                                                                        RECEIVED NYSCEF: 04/02/2024

                    The plaintiff thereafter again moved, by order to show cause, to compel compliance with
            the subpoena and for an order of finding the defendant in contempt and directing that the
            defendant be imprisoned until he purges the contempt. In the alternative, the plaintiff sought an
            order again directing the defendant to comply and requiring him to pay the plaintiff's costs and
            expenses occasioned by his failure to comply plus a statutory fine of $250 (see Judiciary Law§
            773). The court directed personal service on the defendant pursuant to the CLPR on or before
            October 18, 2023. The plaintiff submits an affidavit of service in which the process server states
            that, after two unsuccessful attempts at personal service at the defendant's residence, he
            completed personal service by "nail and mail" service on October 17, 2023. Opposition to the
            motion was due November 15, 2023. None was filed.

                    Under Judiciary Law§ 753, a court of record "has power to punish, by fine and
            imprisonment, or either, a neglect or violation of duty, or other misconduct, by which a right or
            remedy of a party to a civil action or special proceeding, pending in the court may be defeated,
            impaired, impeded, or prejudiced." Judiciary Law§ 753(A). To support a finding of civil
            contempt, the court must determine (1) that a lawful order of the court, clearly expressing an
            unequivocal mandate, was in effect, (2) that it appears, with reasonable certainty, that the order
            has been disobeyed, (3) that the party to be held in contempt had knowledge of the order, and
            (4) there is demonstrated prejudice to the right of a party to the litigation. Matter of McCormick v
            Axelrod, 59 NY2d 574 (1983); see EI-Dehdan v EI-Dehdan, 26 NY3d 19 (2015); Bernard-Cadet
            v Gobin, 94 AD3d 1030 (2 nd Dept. 2012). The burden is on the party moving for civil contempt
            to establish the foregoing elements by clear and convicting evidence. EI-Dehdan v EI-Dehdan,
            supra at 29; see Tener v Cremer, 89 AD3d 75 (1 st Dept. 2011); Bernard-Cadet v Gobin, supra at
            1031.

                    In support of its motion, the plaintiff submits, inter alia, the subject information subpoena,
            affidavits of service and an affirmation of its attorney, Alexander Mirkin, who attests that the
            defendant has not paid any portion of the judgment and argues that the defendant's failure to
            respond to the plaintiff's information subpoena defeated, impaired, and prejudiced the plaintiff's
            rights by frustrating its attempts to identify any assets against which to enforce the judgment.
            The court notes that no affidavit of someone from the plaintiff company with personal knowledge
            was submitted. In any event, the plaintiff's submissions tend to show that the defendant
            judgment debtor has failed to satisfy the judgment in whole or part, that he was duly served with

             650698/2020 WIND RIVER INVESTMENTS, LLC vs. MURPHY, JR., JOHN J.                       Page 2 of 4
             Motion No. 003

                                                            2 of 4
[* 2]
                                                                                                        INDEX NO. 650698/2020
  NYSCEF DOC. NO. 47                                                                            RECEIVED NYSCEF: 04/02/2024

            the subpoena and court order and has continually failed to respond, and that the plaintiff's ability
            to locate the defendant's assets to enable it to collect on its judgment was impaired and
            prejudiced by the defendants' conduct. See CPLR 5251; Gryphon Domestic VI, LLC v APP Intl.
            Finance Co., 58 AD3d 498 (1 st Dept. 2009); Farkas v Farkas, 209 AD2d 316 (1 st Dept. 1994). By
            failing to appear or respond to this motion, the defendant raises no fact or argument to the
            contrary. See Yonamine v New York City Police Dept., 121 AD3d 598 (1 st Dept. 2014); 1319
            Third Ave. Realty Corp. v Chateaubriant Rest. Dev. Co., LLC, 57 AD3d 340 (1 st Dept. 2008).

                      While the court does not grant the plaintiff's motion in full at this juncture, in light of the
            prior history of this matter, the plaintiff is entitled to recover from the defendant the attorney's
            fees and costs incurred on this motion, which was occasioned by the defendant's recalcitrance.
            In addition, barring a full satisfaction of the judgment prior to that time, the defendant is directed
            to comply in full with the information subpoena within 30 days. Upon any failure to comply, the
            court will schedule a contempt hearing. In that regard, the defendant is cautioned that pursuant
            to CPLR 5223, any failure to comply with an information subpoena is governed by CPLR
            2308(b), which, upon a finding of contempt, allows the court to issue a warrant directed to the
            sheriff of the county where the person is, committing him to jail, there to remain until he [or she]
            submits to do the which he [or she] was so required to do or is discharged according to law." To
            be sure, upon a proper showing by the plaintiff at the contempt hearing, the warrant will issue
            should the defendant fail to appear.

                      Accordingly, upon the foregoing papers and this court's prior orders, it is

                      ORDERED that the motion of the plaintiff Wind River Investments, LLC to, inter alia,
            compel compliance with the subpoena and for an order of finding the defendant, John J. Murphy
            Jr., in contempt and directing that the defendant be imprisoned until he purges the contempt, is
            granted to the extent that the defendant ( 1) shall pay the plaintiff's attorney's fees and costs for
            this motion upon any order so directing payment, and (2) unless he satisfies the judgment in full
            prior to that time, within 30 days of the date of service of this order with notice of entry, the
            defendant shall comply in full with the information subpoena dated July 18, 2022, and it is
            further

             650698/2020 WIND RIVER INVESTMENTS, LLC vs. MURPHY, JR., JOHN J.                           Page 3 of 4
             Motion No. 003

                                                              3 of 4
[* 3]
                                                                                                     INDEX NO. 650698/2020
  NYSCEF DOC. NO. 47                                                                           RECEIVED NYSCEF: 04/02/2024

                    ORDERED that upon any failure of the defendant to so comply, the plaintiff may submit
            an affirmation of non-compliance to the court and the court will schedule a contempt hearing,
            and the plaintiff's motion is otherwise denied without prejudice, and it is further

                    ORDERED that the plaintiff shall file supplemental papers to demonstrate the attorney's
            fees and costs incurred on this motion, within 30 days of the date of this order, and shall notify
            the Part 61 Clerk of any such filing, and it is further

                    ORDERED that the plaintiff shall serve a copy of this order with notice of entry, along
            with a courtesy copy of the underlying subpoena, upon the defendant by overnight mail service,
            certified mail and e-mail, if available, within 10 days of the date of this order.

                    This constitutes the Decision and Order of the court.

                     4/2/2024
                      DATE                                                        NANCY M. BANNON, J.S.C.

                                                                       ~
             CHECK ONE:                   CASE DISPOSED                    NON-FINAL DISPOSITION

                                          GRANTED         □ DENIED         GRANTED IN PART          □ OTHER
             APPLICATION:                 SETTLE ORDER                     SUBMIT ORDER

             CHECK IF APPROPRIATE:        INCLUDES TRANSFER/REASSIGN       FIDUCIARY APPOINTMENT    □ REFERENCE

             650698/2020 WIND RIVER INVESTMENTS, LLC vs. MURPHY, JR., JOHN J.                        Page4 of 4
             Motion No. 003

                                                            4 of 4
[* 4]