In Xiotis Rest. Corp. v. LSS Leasing Ltd. Liab. Co. , Xiotis sought to obtain a "Yellowstone" injunction against LSS Leasing.
A "Yellowstone" allows a tenant to stop the running of the time-period delineated in a landlord's default notice while the merits of the parties' dispute are being litigated. (The remedy is intended to allow a tenant to address the default(s) while avoiding a termination of the tenancy and forfeiture of a lease.)
To secure this special injunction, a tenant must demonstrate that: "1) it holds a commercial lease; 2) it has received from the landlord a notice of default; 3) its application for a temporary restraining order was made prior to expiration of the cure period and termination of the lease; and 4) it has the desire and ability to cure the alleged default by any means short of vacating the premises."
When the Queens County Supreme Court granted Xiotis' request, LSS appealed to the Appellate Division, Second Department, arguing that the tenant had not satisfied the governing elements.
The AD2 disagreed and concluded that Xiotis had timely received a temporary restraining order and sufficiently demonstrated it had the ability and desire to address the alleged defaults (thus entitling it to the awarded equitable relief).
There's no X'ing out Xiotis, just yet!
To download a copy of the Appellate Division's decision, please use this link: Xiotis Rest. Corp. v. LSS Leasing Ltd. Liab. Co.