Morrison Cohen Secures Another Win for Subtenant after Making New Law

March 10, 2021 - Back in September, in a decision that was perhaps the first of its kind, attorneys from our Real Estate Litigation team led by Partner Christopher Milito persuaded the Supreme Court of the State of New York to grant a Yellowstone injunction to our client, a subtenant, seeking relief against a landlord threating to terminate the master tenant’s lease following an alleged default. In the most recent order and decision, the Court denied the landlord’s motion for summary judgment and to vacate that Yellowstone injunction.  

The Court’s recent decision upholds its prior determination that the landlord failed to evidence the execution of the modified lease by an authorized officer, in this case the unauthorized officer being landlord’s counsel. Further, the Court’s decision also reaffirms the effectiveness of the Yellowstone injunction as well as subtenant’s ability to cure any default. 

The Morrison Cohen team also included Y. David Scharf and Joaquin Ezcurra. 

The case is SMG Automotive Holdings and Zacahry Schwebel v. AAF Real Estate, LLC, Kings Automotive Holdings, LLC, Gary Flom and Veniamin Nilva, Case No. 510650/2020, in the Supreme Court of the State of New York, County of Kings.

A copy of the decision can be accessed here.