Gadeco, LLC v. GrynbergAnnotate this Case
The issue this case presented for the Colorado Supreme Court's review centered on whether defendant Jack Grynberg impliedly waived the physician–patient privilege by either: (1) requesting specific performance of a contract; or (2) denying plaintiffs’ allegations that he made irrational decisions. Grynberg asserted counterclaims for breach of contract against the plaintiffs, his children and former wife (“the Family”). According to Grynberg, he transferred his ownership interests in the businesses to the Family on the condition that he would remain in control of the businesses until his death. Grynberg alleged Family members expressed agreement to these terms either orally, in writing, or implicitly through their conduct. Then in 2016, the Family voted to remove Grynberg as president of each business, citing his declining mental health. Grynberg refused to comply. The Family filed suit, seeking a declaration that Grynberg no longer controlled the businesses and an injunction preventing him from representing the businesses. In its complaint, the Family asserted that Grynberg was exhibiting erratic behavior, making irrational decisions, and committing significant company funds to obviously fraudulent scam operations. In his amended answer, Grynberg denied the Family’s allegations and asserted counterclaims, including claims for breach of the lifetime-control agreement. Grynberg alleged that the Family’s breach of the oral or implied contract caused substantial monetary harm, and he sought “damages and/or specific performance” as relief. The trial court found that Grynberg impliedly waived the physician–patient privilege by asserting those counterclaims, and it ordered him to produce three years’ worth of mental health records for in-camera inspection. Grynberg petitioned the Supreme Court to review that ruling. Only privilege holders (patients) can impliedly waive the physician–patient privilege, and that they do so by injecting their physical or mental condition into the case as the basis of a claim or an affirmative defense. An adverse party cannot inject the patient’s physical or mental condition into a case through its defenses. Patients do not inject their mental condition into the case by denying the opposing party’s allegations. The Supreme Court found Grynberg did not inject his mental condition into the case as the basis of a claim by alleging that the Family breached a contract that does not reference his mental health. Likewise, he did not inject his mental condition into the case as the basis of a claim or an affirmative defense by denying the Family’s allegations that he made irrational decisions. Accordingly, the Court concluded Grynberg did not impliedly waive the physician–patient privilege and that the trial court abused its discretion by ordering Grynberg to produce his mental health records for in-camera inspection.