PORT AUTHORITY OF NEW YORK AND NEW JERSEY v. American Stevedoring, Inc., Defendant–Appellant. (2019)

Order, Supreme Court, New York County (O. Peter Sherwood, J.), entered May 11, 2017, which, to the extent appealed from, denied the cross motion of defendant American Stevedoring, Inc. (ASI) to vacate the temporary restraining order and release the remaining escrow funds to ASI, unanimously affirmed, with costs.

The motion court did not abuse its discretion when it denied the cross motion to vacate the temporary restraining order (see Rosemont Enters. v. Irving, 49 A.D.2d 445, 448, 375 N.Y.S.2d 864 [1st Dept. 1975], appeal dismissed 41 N.Y.2d 829, 393 N.Y.S.2d 399, 361 N.E.2d 1047 [1977];  see also Dupree v. Scottsdale Ins. Co., 96 A.D.3d 546, 947 N.Y.S.2d 428 [1st Dept. 2012] ).  The TRO was entered on consent to stay distribution of funds escrowed by the parties under a separate agreement for the benefit of ASI'S creditors, which included plaintiff.  ASI was a terminal operator at the Brooklyn and Newark Ports that suspended its marine terminal operations and went into the business of leasing equipment necessary to such operations.  ASI's statements in the prior litigation that it was threatened with insolvency, in addition to ASI's improper transfer of approximately $ 4 million to the wife of ASI's principal, demonstrate the need to continue the temporary restraining order so that any arbitration award would not be rendered ineffectual (see CPLR 7502[c];  New York City Off–Track Betting Corp. v. New York Racing Assn., 250 A.D.2d 437, 439, 673 N.Y.S.2d 387 [1st Dept. 1998] ).