Orders Of Contempt Entered Against Spouse of Judgment Debtor And Her LLC For Failure To Provide Post-Judgment Discovery Concerning Transfer By Judgment Debtor

Posted: June 6, 2025 / Written by: Jeffrey M. Eilender, Thomas A. Kissane, Samuel L. Butt, Joshua Wurtzel, Channing J. Turner / Categories Contempt, Fraudulent Conveyance, Motion to Compel, Sanctions

Orders Of Contempt Entered Against Spouse of Judgment Debtor And Her LLC For Failure To Provide Post-Judgment Discovery Concerning Transfer By Judgment Debtor

On March 27, 2025, Justice Melissa A. Crane held two non-parties in contempt of court based on their failure to respond to discovery demands concerning a real property transfer. The case is TH Holdco LLC v. Rubin, Index No. 650955/2023.

Non-party Rifka Rubin is the wife of defendant Lipa Rubin. Non-party LRR is a limited liability company controlled by Rifka Rubin. While defendant Lipa Rubin had a motion for summary judgment against him fully submitted, he “transferred real property to LRR by quitclaim deed, apparently for no consideration.” Slip op., p. 1.

After receiving a judgment of $58,549,183.67 against Lipa Rubin, plaintiff served information subpoenas and subpoenas duces tecum on Rifka Rubin and LRR. Justice Crane held that, by reason of their failure to respond to these subpoenas:

Ms. Rubin and LRR are in contempt of court, warranting a contempt sanction . . . .Moreover, their actions defeated, impaired, impeded and prejudiced plaintiffs rights and remedies as plaintiff has a judgment against defendants that has been impossible to collect due to Ms. Rubin's and LRR's obstructionism. Thus, this Court orders that Ms. Rubin and LRR will be responsible for all of plaintiff’s REASONABLE costs associated with this motion including plaintiffs attorneys' fees and costs incurred in connection with the preparation, filing, and prosecution of both this motion and the prior motion to compel. Plaintiff has leave to interpose an affirmation in support of its reasonable fees and costs.

In order to purge herself of the contempt, Ms. Rubin must comply with the subpoenas . . . Otherwise, the court may impose fines and imprisonment upon her.

Likewise . . . unless LRR purges its contempt by complying with the subpoenas the court imposes a fine of $250.00 upon LRR. In addition, unless Ms. Rubin and LRR answer the information subpoenas and produce all applicable documents by June 16, 2025, plaintiff will be authorized to apply for an order of commitment directing that the Sheriff of the City of New York, or the Sheriff of any County within the State of New York wherein Ms. Rubin may be apprehended, arrest Ms. Rubin and produce her before the justice presiding at Supreme Court, New York County, Part Sixty during the time when such part is in session, to be committed or for such disposition as the court in its discretion shall direct.

Slip op., pp. 2-3.

Contact the Commercial Division Blog Committee at commercialdivisionblog@schlamstone.com if you or a client have questions concerning contempt, fraudulent conveyances, motions to compel or sanctions.