In a December 21, 2010 decision by Justice Kitzes the court granted a commercial tenant a Yellowstone Injunction, and transferred the case to New York County because it was improperly commenced in Queens County. The litigation stemmed from the commercial tenancy. The tenant exercised its right to purchase the property and shortly thereafter the landlord started issuing notices to cure, in an alleged attempt to avoid having to sell the property to the tenant. It is alleged that the landlord did not want to sell the property because it was significantly more valuable than the purchase price set forth in the lease.
The court found that the tenant had demonstrated the requirements for a Yellowstone Injunction but that plaintiff improperly venued the action in Queens. The court found that the “residence” of the plaintiff corporation was in New York County because that was where its principal office was located and that the residences of the shareholders in the corporation was irrelevant.
Of note, defendant argued that because plaintiff failed to obtain an extension of the temporary restraining order on the return date of the motions the original temporary restraining order had been lifted. Justice Kitzes stated that “it is this court’s policy to deem all stays continued on the submission date until an order resolving the matter is issued.”
Canal Furniture Corp. v. Harrison, Sup Ct, Queens County, December 21, 2020, Kitzes, J, Index No. 18467/10