BY JOHN KIRITSIS, ESQ., CPA, MBA, MS, JD, LL.M
A Yellowstone injunction is a legal remedy available in New York to commercial tenants facing a potential eviction due to alleged lease violations or breaches of lease terms. It allows the tenant to maintain their lease while resolving disputes or alleged breaches through the legal process. Here’s an overview of the “nuts and bolts” of New York laws involving Yellowstone injunctions:
- Purpose of Yellowstone Injunctions:
A Yellowstone injunction is sought by a commercial tenant to prevent the landlord from terminating the lease and evicting the tenant while a dispute over alleged breaches or violations of lease terms is being resolved.
- Timing of the Application:
To be effective, a tenant typically applies for a Yellowstone injunction before the lease termination date specified in the landlord’s notice of default. The injunction aims to maintain the status quo during legal proceedings.
- Filing a Petition:
The tenant files a petition in the appropriate court seeking a Yellowstone injunction. The petition should demonstrate the tenant’s willingness to cure the alleged default and the irreparable harm the tenant would suffer if evicted.
- Elements Required for Injunction:
For a court to grant a Yellowstone injunction, the tenant usually needs to demonstrate the following elements:
The existence of a commercial lease.
A notice of default or termination from the landlord.
The tenant’s desire to cure the alleged default.
A substantial question about the validity of the default.
The potential for irreparable harm if the injunction is not granted.
An undertaking to pay rent during the proceedings.
- Posting a Bond or Undertaking:
To secure the injunction, the tenant is often required to post a bond or provide an undertaking to cover the landlord’s damages and costs if it’s later determined that the injunction was wrongfully obtained.
- Lease Cure Period:
If the court grants the Yellowstone injunction, the tenant is often granted a period during which they can cure the alleged default as specified in the notice of default.
- Resolution of the Dispute:
While the Yellowstone injunction is in effect, the tenant and landlord continue to litigate the alleged lease violations or breaches. The injunction aims to maintain the status quo until a resolution is reached.
- Termination of the Injunction:
The injunction can be terminated if the court determines that the tenant’s alleged default is valid, the tenant fails to cure the default during the cure period, or other legal reasons exist.
- Legal Counsel:
Obtaining a Yellowstone injunction involves legal complexities. It’s recommended for commercial tenants seeking this remedy to consult with experienced real estate attorneys who are knowledgeable about New York’s commercial lease laws and the specific requirements for obtaining the injunction.
Yellowstone injunctions provide commercial tenants with a legal tool to protect their lease rights and continue occupying the premises while disputes over lease breaches are resolved. Understanding the process and seeking legal guidance is crucial when pursuing or defending against a Yellowstone injunction in New York.
Citations, References and Potentially Useful Resources for Further Information:
U.S. Constitution
New York State Constitution
Federal Securities Regulation
New York State Martin Act
New York Condominium Act
New York State Security Regulations
New York Business Corporation Law
New York Limited Liability Company Law
New York Uniform Partnership Act
Federal Internal Revenue Code
New York State Tax Laws, Rules & Regulations
New York City Tax Laws, Rules & Regulations
Winston Churchill Owners, Inc. v. Regents Real Estate Associates
Board of Managers of the Park Regis Condominium v. Park Regis Owners Corp.
Park Sutton Condominium v. 447 E. 57th St. LLC
28 E. 10th Street Corp. v. Veras
Riverside Syndicate, Inc. v. Munroe
Essex House Condominium v. Marks
The Parc Vendome Condominium v. Atkinson
54-56 Meserole Street Owners Corp. v. Rossi
The Beekman Regent Condominium v. Bottiglieri
Chelsea 19th LLC v. West 19th Street Realty LLC
ACRIS
New York Department of Finance
New York City Department of Buildings
New York City Bar Association
New York State Bar Association
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