There's hope for commercial tenants served with notice to cure

Is your landlord threatening to terminate your commercial lease? You may be able to get a Yellowstone injunction to give you time to cure the alleged breach of the lease, or to defend the case without risking eviction if you lose.

When a commercial tenant receives a notice to cure, the tenant must take action before the notice expires. If the tenant does not and permits the notice to cure to expire, then the landlord may serve a termination notice and commence a holdover (eviction) proceeding in Civil Court. In such a case if the landlord establishes a breach of the lease, then the tenant will not be provided an opportunity to cure, and will be evicted. This is because the law that allows for a post-judgment cure only applies to residential leases. In such a commercial eviction proceeding predicated upon a breach of lease, the tenant's defenses are limited to proving that there was no breach of the lease.  

Why do landlords typically seek to terminate commercial leases?

Reasons that commercial tenants may receive a notice to cure can include:

  • Making illegal alterations
  • Subletting
  • Not getting permits for work performed
  • Violating the certificate of occupancy
  • Using the space for things not permitted by the lease

A lawyer's counsel is critical

Commercial tenants who receive a notice to cure need to retain a lawyer right away. Tenants get only 10 days or less to resolve the issue before the landlord can serve them with a notice to terminate the lease. They can, however, ask the New York Supreme Court for a Yellowstone injunction if they have a defense to the breach or need more time to cure the breach. These injunctions are often granted. While the court may provide the injunction, it sometimes requires that the tenant posts a bond, especially where the alleged breach relates to purported damage to the leased premises.

Don't hesitate to speak with an attorney if your commercial lease is in danger. Experienced legal counsel will ensure that you understand your options and that your rights are protected.

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