For commercial tenants in alleged violation of their lease and under threat of eviction, a Yellowstone injunction can be a lifesaver. But only if it’s done properly and on time.
A Yellowstone injunction is a legal remedy available in New York State for commercial tenants that freezes a landlord’s right to terminate the lease during a dispute.
A Yellowstone injunction (named after a 1968 precedent case) is a form of injunctive relief, or restraining order, the purpose of which is to allow a commercial tenant under the threat of lease termination to obtain a stay, granting them more time to cure any alleged lease violations.
The lease is maintained for the duration of the stay period, so that the tenant can resolve the issue without losing their leasehold interest, until the court determines the merits of the case.
After or during a pending judicial determination, the tenant can cure any violations of the lease and avoid forfeiting it.
To obtain a Yellowstone injunction, the tenant need only demonstrate that:
- They hold a commercial lease.
- They received from the landlord either a notice of default, a notice to cure (specifying the timeframe they have to cure any violations), or a threat of termination of the lease.
- They requested injunctive relief prior to both the termination of the lease and the expiration of the cure period (set in the lease and the landlord’s notice to cure).
- They’re able and willing to cure the alleged defaults in a timely manner, by any means short of vacating the premises.
Aside from insurance, most defaults are capable of cure and could be the basis of a Yellowstone injunction.
It’s vital that the tenant seeks the injunction during the cure period (as set either in the lease or the landlord’s notice to cure). If the cure period has expired, the relief is not available.
For any questions or assistance regarding commercial or private landlord-tenant issues, contact us.
