Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

<b><i>Yellowstone</i></b> Injunctions When Prompt Cure Is Impossible

By Alexander Lycoyannis
April 01, 2017

Most real estate practitioners are well acquainted with the Yellowstone injunction and its importance in preserving the status quo while allegations that a commercial tenant has breached its lease are litigated. For the uninitiated, Supreme Court will issue a Yellowstone injunction tolling the running of a cure period and staying the landlord's efforts to evict the tenant, pending the litigation and resolution of the underlying action, where the plaintiff: 1) holds a commercial lease; 2) was served with a default notice threatening to terminate the tenancy; 3) sought a Yellowstone injunction prior to the expiration of the cure period set forth in the notice; and 4) is prepared to, and maintains the ability to, cure the alleged lease violation(s) by any means short of vacating the subject premises. See, e.g., Graubard Mollen Horowitz Pomeranz & Shapiro v. 600 Third Ave. Associates, 93 NY2d 508.

Timeliness of the Motion

While all four factors must be satisfied, the third Yellowstone prong — timeliness of the motion — is especially important. Where a tenant fails to seek a Yellowstone injunction prior to the expiration of the cure period set forth in the default notice, the motion will be denied, the lease will terminate and Supreme Court will be powerless to reinstate the tenancy. See, e.g., Three Amigos SJL Rest., Inc. v. 250 West 43 Owner LLC, 144 AD3d 490; 166 Enterprises Corp. v I G Second Generation Partners, L.P., 81 AD3d 154. One day, or even one hour, can make all the difference between saving a long-term commercial tenancy into which vast resources have been invested, and subjecting the tenant to possible eviction in a holdover proceeding.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Removing Restrictive Covenants In New York Image

In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?

Fresh Filings Image

Notable recent court filings in entertainment law.