Court Grants Yellowstone Injunction, Noting Low Burden for Granting Such an Injunction

On July 11, 2019, Justice Livote of the Queens County Commercial Division issued a decision in US Bank N.A. v N. Blvd. 4818, LLC, 2019 NY Slip Op. 32572(U), granting a Yellowstone injunction staying the termination of a commercial lease, explaining:

A Yellowstone injunction maintains the status quo so that a commercial tenant, when confronted by a threat of termination of its lease, may protect its investment in the leasehold by obtaining a stay tolling the cure period so that upon an adverse determination on the merits the tenant may cure the default and avoid a forfeiture.

The party requesting a Yellowstone injunction must demonstrate that: (1) it holds a commercial lease; (2) it received from the landlord either a notice of default, a notice to cure, or a threat of termination of the lease; (3) it requested injunctive relief prior to the termination of the lease; and (4) it is prepared and maintains the ability to cure the alleged default by any means short of vacating the premises.

In considering Yellowstone injunctions, courts generally accept far less than the showing normally required for the grant of preliminary injunctive relief.

(Internal quotations and citations omitted) (emphasis added).

We litigate Yellowstone injunctions--a motion to prevent a landlord from evicting a commercial tenant for defaults under the lease--for both landlords and tenants. Contact Schlam Stone & Dolan partner John Lundin at jlundin@schlamstone.com if you are involved in a dispute regarding the termination of a commercial lease because of a default under the lease.