Court Declines to Require Undertaking on Yellowstone Injunction

On November 30, 2023, Justice Ruchelsman of the Kings County Commercial Division issued a decision in L.I. Champions Taekwondo Inc. v. 151 Montague Opportunity LLC, 2023 NY Slip Op. 34218(U), declining to require an undertaking when issuing a Yellowstone injunction, explaining:

Concerning the imposition of an undertaking, it is well settled that upon granting a Yellowstone injunction the court may imp9se reasonable conditions including the posting of an undertaking. Thus, the imposition of an undertaking is discretionary. An undertaking would be appropriate for an amount rationally related to the damages that can be suffered if the relief should not have been granted. As noted, there has been no determination that a violation 0£ the lease even exists.

Therefore, the request for an undertaking at this time is denied. Of course, the tenant must continue to pay rent and satisfy all other terms of the lease.

(Internal citations omitted).

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