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For business enterprises, a commercial lease often represents one of their most valuable assets—obtaining and keeping a lease is critical to the success of the enterprise, and an alleged lease violation can represent an existential threat to a business. When a landlord serves a notice to cure an alleged default, a commercial tenant may only have a matter of days to resolve the problem before facing eviction, making it nearly impossible for the tenant to challenge the validity of the assertion of default without losing the lease. New York courts have created a legal remedy to avoid this Hobson’s choice—the Yellowstone injunction.
A Yellowstone injunction tolls the tenant’s time to cure the alleged default while the tenant pursues a legal determination as to whether cure is in fact required under the terms of the lease. By pursuing this injunctive relief, a commercial tenant can avoid the potentially unnecessary cost of curing the alleged default, while ensuring that its interest in the lease is protected until a court has had a chance to weigh in on the merits of the dispute.
This program will be presented by Jacqueline L. Bonneau and Muhammad U. Faridi, members of Patterson Belknap Webb & Tyler LLP’s Commercial Real Estate Workouts and Litigation team. The team draws upon its vast experience across multiple disciplines in advising clients on navigating through their options in complex deal structures and, if necessary, exercising or defending their rights in the litigation arena. In doing so, the team leverages its experience from many different perspectives, as opposed to looking at a matter from the standpoint of a single player in the arena. Over the years, they have represented key stakeholders from many different aspects of the industry. They will:
- Provide an overview of the key legal considerations in obtaining or defending against a Yellowstone injunction (20 minutes)
- Discuss whether injunctive relief can be obtained in certain common default scenarios (30 minutes)
- Highlight some recent developments in this area of law (10 minutes)