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Grynberg & Associates, 208 Cal. Rptr. 336 (Ct. App. 1984) (the
Danzig case). The story of that litigation began more than 20
years ago when petitioner publicly offered limited partnership
interests in an oil exploration partnership in which JGA was the
general partner. A dispute arose between the limited partners
and the Grynbergs regarding mismanagement of the partnership and
the status of certain oil and gas leases belonging to the
Grynbergs that JGA purportedly contributed to the partnership.
While the couple intended that title to the oil and gas leases
would revert to their possession when the partnership terminated,
the limited partners were led to believe that the leases were
distributable assets of the partnership.
The Danzig Case
In March 1975, the limited partners filed a class action in
the Superior Court of California, Alameda County (superior
court), against JGA and the Grynbergs, alleging breach of
fiduciary duty and fraud and seeking rescission of their limited
partnership agreements. Within weeks of commencing suit, the
plaintiffs filed notices of lis pendens in local recording
offices to warn prospective purchasers that title to the oil and
gas leases was in dispute and subject to the outcome of the
litigation.
The Danzig case was finally brought to trial in February
1980. In September 1980, the superior court filed its notice of
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