A commercial tenant got a Yellowstone injunction: what does that mean for the landlord?

This page explains New York law on Yellowstone injunctions from the commercial landlord's side: what the tenant must show, what the order does and does not do, and how a landlord protects itself while the injunction is in place. The name comes from a 1968 Court of Appeals decision, First National Stores v Yellowstone Shopping Center, which later decisions cite as the source of the remedy. KOR Law LLP's landlord representation practice handles enforcement of commercial lease covenants, including use restrictions and alteration provisions, and plenary commercial lease litigation that extends beyond summary proceedings.

Why do tenants seek Yellowstone injunctions?

Most commercial leases let the landlord serve a notice to cure a default and, if the tenant does not cure in time, terminate the lease. Once the lease is terminated, the tenant can lose the premises even if it later proves it was right. A Yellowstone injunction freezes that clock while a court decides the dispute. As the First Department put it in Ballinteer Corp v SNRP W. 37 (2023), "the focus is on maintaining the status quo in Yellowstone applications."

The tenant asks for the injunction in a lawsuit for declaratory and injunctive relief; in the decisions discussed here, those actions were brought in Supreme Court. The ordinary preliminary injunction statute requires the court to fix an undertaking before granting relief (CPLR 6312(b)), and the general standards and timing of emergency relief are covered in how fast you can get a TRO or preliminary injunction in a New York business dispute.

What must the tenant show?

In Dali NYC LLC v Shay (2024), the First Department restated the four-part test, quoting the Court of Appeals. The tenant must show 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 tenant does not have to prove it will likely win on the merits; Ballinteer held that likelihood of success is not a prerequisite. That makes the landlord's best arguments the timing and curability prongs:

• Timing. "A tenant is generally not entitled to a Yellowstone injunction after the cure period has expired" (Dali, citing a 2016 First Department decision).
• Curability. Some defaults cannot be cured. In Dali, the tenant's failure to carry the liability insurance the lease required for the period at issue was "an incurable defect for Yellowstone purposes," and the injunction was denied.
• Rent demands. A statutory rent demand is not a notice to cure. In 170 Tillary Corp. v Gold Tillary Realty (2025), the Second Department explained that a rent demand "generally cannot form the basis of a Yellowstone injunction," because a tenant in a non-payment case can protect itself by paying under RPAPL 751(1). The court allowed relief only for charges it was uncertain could be collected in a non-payment proceeding.

How does a Yellowstone dispute unfold, step by step?

1. Landlord serves a notice to cure identifying the default and the cure period under the lease.
2. Tenant files suit before the cure period ends, usually by order to show cause, asking for a temporary restraining order and a Yellowstone injunction.
3. Temporary restraining order. The court may sign a TRO pending the hearing where immediate injury would otherwise result (CPLR 6301).
4. Landlord opposes, pressing timeliness, curability and the amount of security.
5. Court rules and sets conditions. If relief is granted, the court sets an undertaking and may require ongoing rent or use and occupancy.
6. Litigation on the merits. The court decides whether a default occurred. When the case ends, the injunction ends with it, and the parties' rights under the notice and the lease are decided by the court's ruling.

What can the landlord still do while the injunction is in place?

Quite a lot. The tenant's lease obligations continue, including rent and arrears, because the injunction "only protects" the tenant from eviction (Ballinteer, quoting the Court of Appeals). A landlord can ask the court at the outset, or later on a proper showing, to require ongoing rent or use and occupancy as a condition of the injunction (Ballinteer; RPAPL 745(2)(a)). If rent goes unpaid, a separate non-payment proceeding is a different remedy from the noticed default, since a rent demand is not a notice to cure (170 Tillary Corp.), and a money judgment for arrears can be collected with the tools described in what happens after a money judgment is entered in New York.

Getting the injunction lifted takes something new. In Medical Bldg. Assoc. v Abner Props. (2020), the First Department reinstated a Yellowstone injunction that a trial court had vacated, because the landlord's motion relied on the same kind of evidence the court had already found raised factual issues about unpaid use and occupancy, with no extraordinary circumstances or new proof. A landlord that wants the order vacated should build a fresh record, such as later defaults or a clear failure to meet a payment condition.

What changes the answer?

• When the tenant filed. Before the cure period expired, or after (Dali).
• What the default is. Insurance lapses for past periods can be incurable (Dali); a rent demand is generally not a basis at all (170 Tillary Corp.).
• The lease's cure period. It sets the deadline the tenant must beat.
• The landlord's proof of harm. It drives the undertaking amount (East 54th Operating; CPLR 6312(b)).
• Whether the tenant can use the premises. In Ballinteer, evidence that the landlord itself kept the tenant from using the space weighed against ongoing payments.
• Disputed facts. A hearing may be required (CPLR 6312(c)).

For example: an unapproved alteration in a Manhattan retail space

Common mistakes

• A vague notice to cure. The notice should state the default and cure period clearly, so the timing argument is clean.
• Treating a rent demand as a notice to cure. They are different documents with different consequences (170 Tillary Corp.).
• Not asking for security. Courts fix undertakings based on the landlord's showing of potential damages (East 54th Operating).
• Forgetting rent. Ask the court to condition relief on rent or use and occupancy (Ballinteer).
• Missing incurable defaults. Past insurance lapses can defeat the application (Dali).
• Terminating mid-litigation without checking the order. A TRO or injunction may bar it.

What to do this week

1. Calendar the cure period from the date the notice was served.
2. Gather proof of the default: photos, insurance certificates, correspondence.
3. Estimate the landlord's potential damages to support an undertaking request.
4. Collect the rent ledger to support a use and occupancy condition.
5. Check whether any default is incurable as a matter of the lease's terms.
6. Speak with counsel about opposing the motion and about a separate non-payment case if rent is unpaid.

If the issue is unpaid rent rather than a lease violation, the right path is usually a commercial non-payment case in New York City.

Frequently asked questions

Does a Yellowstone injunction mean the tenant was right?

No. The tenant need not show it will likely win (Ballinteer), and the order preserves the status quo while the court decides whether there was a default.

Can a residential tenant get a Yellowstone injunction?

The four-part test refers to a commercial lease (Dali). Residential tenants have statutory cure protections instead, such as the 30-day stay to cure a lease breach in a dwelling case (RPAPL 753(4)); see what notice a New York landlord must give before a holdover case.

Can the landlord still bring a holdover case?

While the injunction stands, the landlord generally cannot terminate the lease on the noticed default. If the tenant loses and the lease is then validly terminated, possession is recovered through the usual summary process and the warrant of eviction.

Who pays the legal fees?

It depends on the lease's fee clause; see whether a New York landlord can recover attorney's fees from a tenant.

Can the landlord recover damages if the injunction was wrongly granted?

That is the purpose of the undertaking: the tenant promises to pay the damages and costs caused by the injunction if it is finally determined that it was not entitled to it (CPLR 6312(b)).

What if the tenant also has a guarantor?

A guaranty is a separate contract, and its terms decide what it covers. Defenses guarantors raise are discussed in what defenses a personal guarantor has when a New York lender sues.