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News | 03.07.18

Morrison Cohen Successfully Obtains Preliminary Injunction for Client to Preserve the Status Quo While Tenant’s Right to Equitably Renew its Ground Lease is Adjudicated

March 7, 2018 – Morrison Cohen successfully obtained a preliminary injunction in New York Supreme Court, Commercial Division, preventing its client (“Tenant”), from losing its ground lease interest (the “Lease”) in a commercial high-rise property in Manhattan (the “Premises”). 

The Landlord had rejected Tenant's attempt to exercise its renewal rights under the Lease on the ground that Tenant's renewal notice was late. When Landlord refused to reconsider its position, Morrison Cohen, on behalf of Tenant, commenced suit seeking to enforce Tenant's equitable renewal right based on Tenant's (i) significant improvement to the Premises made with intent to renew the Lease, (ii) excusable neglect in failing to renew timely, and (iii) lack of prejudice to Landlord.

On February 28, 2018, Justice Saliann Scarpulla issued a decision and order granting a preliminary injunction barring Landlord from entering into a new Lease with a third party while Tenant's equitable renewal right is adjudicated. Justice Scarpulla determined that Tenant had shown a likelihood of success on the merits of its equitable renewal claim, as well as irreparable harm from the loss of the tenancy.

Click here for a copy of the Order.

The Morrison Cohen team included Y. David Scharf, Alvin C. Lin, and Jed E. Dinnerstein.

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