For commercial businesses, a commercial lease is often one of their most valuable assets – obtaining and maintaining a lease is critical to the success of the business. An alleged breach of a lease can pose an existential threat to a business, because once a lease is terminated, it usually cannot be reactivated. When a landlord serves notice to remedy a suspected defect, a commercial tenant may have only a few days to resolve the issue before facing termination, making it nearly impossible for the tenant to dispute the validity of the defect. presumed without losing the lease. The courts of New York have created a legal remedy to avoid this choice of Hobson: the Yellowstone the injunction, which gives the tenant time to remedy the alleged breach while the tenant pursues a legal decision as to whether relief is in fact required under the terms of the lease. This article provides an overview of the main legal considerations in obtaining or defending against a Yellowstone injunction.
Elements of a “Yellowstone” injunction
Tenants looking for a Yellowstone the injunction must show:
- The existence of a commercial lease;
- The tenant has received a notice of default, a notice of adjustment or a threat of termination of the lease;
- The tenant applied for the injunction before the termination of the lease and the expiration of the specified period of treatment; and
- The tenant is willing and able to remedy the alleged defect.