Landlord & Tenant Law

On tenant’s motion for a Yellowstone injunction, tenant appealed from Supreme Court’s denial of the motion and grant of landlord’s cross-motion to dismiss the complaint. The Appellate Division affirmed, holding that because tenant’s default in obtaining insurance was incurable, tenant was not entitled to a Yellowstone injunction.
Landlord served commercial tenant with a notice to cure alleging that tenant failed to obtain liability insurance required by the lease, failed to obtain Department of Buildings signoffs for renovations, and illegally used the premises’ mezzanine level. After the cure period expired, tenant sought a Yellowstone injunction, which Supreme Court denied.
In affirming, the Appellate Division first noted that tenant brought the action after the cure period expired, and then noted that even if the action were timely under the extended cure period relating to some of the alleged defaults, tenant did not meet the requirements for a Yellowstone injunction with respect to the insurance default. Tenant had obtained coverage for less than the amounts required by the lease. The court held that failure to maintain required coverage was an incurable defect, and precluded grant of a Yellowstone injunction.

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