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Landlord & Tenant Law
Yellowstone Injunction Denied for Failure to Move on Time
The Gap, Inc. v. 170 Broadway Retail Owner, LLC NYLJ 71/21, p. 19, col. 6 AppDiv, First Dept. (memorandum opinion)
Landlord appealed from Supreme Court's grant of a Yellowstone injunction to commercial tenant. The Appellate Division affirmed, holding that because tenant failed to move for the injunction before expiration of the cure period, tenant's motion should have been denied.
When retail tenant stopped paying rent during the coronavirus pandemic, landlord served tenant with a notice to cure. After the cure period expired, tenant sought a Yellowstone injunction, and also brought claims for breach of contract, for a rent abatement, and for rescission of the lease based on frustration of purpose and impossibility. Supreme Court issued the Yellowstone injunction and denied landlord's motion to dismiss the other claims. Landlord appealed.
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