The Yellowstone Injunction is a remedy offered to commercial tenants in receipt of a Notice to Cure or Notice of Default and is based on a 1968 landmark case known as First Nat. Stores Inc. V. Yellowstone Shopping Center, 21 NY 2-D 630.
When a commercial tenant receives a Notice to Cure, he is expected to take action to remedy the landlord’s concern within a specific period of time or vacate the premises. If the tenant needs more time to remedy the problem or believes that he is not in violation of the lease, he should immediately ask his attorney to file for a Yellowstone injunction that will put the landlord’s actions on hold.
In filing the Notice to Cure, the landlord may hope that the tenant will fail to comply, which gives him the right to terminate the lease early. The Yellowstone Injunction removes the time pressure from the Notice to Cure, which not only gives the tenant additional time to comply but also allows time for the judge to decide whether or not you are in default. Some lease violations listed in the Notice to Cure, such as code violations or allegations of illegal sublet, may take more time or money to fix than the tenant can reasonably provide in a few days.
If you receive a Notice to Cure or a Notice of Default, the clock is running on your time to protect your tenancy. You need a file for a Yellowstone Injunction immediately to prevent the landlord from evicting you, so contact an experienced commercial landlord and tenant lawyer to preserve your legal rights.
For experienced legal advice, please call the team at Brasch Law today at 212-267-2500.