On July 10, 2024, Justice Masley of the New York County Commercial Division issued a decision in Wilmington Trust, N.A. v. Elmwood NYT Owner, LLC, 2024 NY Slip Op. 32816(U), denying a Yellowstone injunction because of the tenant’s inability to show that it could cure a rent payment default, explaining:
The party requesting a Yellowstone injunction must demonstrate that: (1) it holds a commercial lease; (2) it received from the landlord either a notice of default, a notice to cure, or a threat of termination of the lease; (3) it requested injunctive relief prior to the termination of the lease; and (4) it is prepared and maintains the ability to cure the alleged default by any means short of vacating
the premises.The Ribbon must show its ability to cure a rent default, if that is the basis of the landlord’s action against the tenant, or the injunction will be denied. The Ribbon has not paid its monthly rent since 2021 and has not shown an ability to cure its defaults nor a desire to cure. As explained on February 5, 2024, the Ribbon’s proof of increasing profits is facially insufficient. Accordingly, the court is compelled to deny the Ribbon’s motion for a preliminary injunction.
(Internal quotations and citations omitted).