In granting a Yellowstone injunction to preserve the status quo to allow a default to be cured, a court may not alter the terms of the lease.

Appellate Division Decision and Order modifying the decision of the Supreme Court.


A commercial tenant under a lease contingent upon the tenant constructing a restaurant was unable to meet the contingency within the time required by the lease because of a denial of an application for a variance from the state building code. The tenant sought a declaratory judgment, and meanwhile applied for a Yellowstone injunction. In granting the Yellowstone injunction, the court below also tolled the deadline for completion of the construction. The Appellate Division held that the Yellowstone injunction may permit the tenant to cure the default, but the court may not change the terms of the lease contract by extending the time within which the construction is to be completed.

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Reference Info:Decision | State, 2nd Circuit, New York | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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