Pureform Movement LLC originally held a lease with Brosrub Company LLC, before the lease was transferred to

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Pureform Movement LLC originally held a lease with Brosrub Company LLC, before the lease was transferred to another landlord, 101 E. Burnside Partners LLC when it bought the building. The lease was for three years starting in October 2011 and expiring in September 2014. The contract allowed Pureform the sole right to renew the lease. Most notably, the lease identified the use of the premise to that of a “Fitness Center and for no other purpose.” Burnside bought the building subject to the lease in effect at the time of closing. 

On December 7, 2014, the New York City Department of Buildings issued a violation alleging that there was a gym operating without the necessary permits and approvals to Burnside. The Department of Buildings assessed a $1,200 fine against the landlord. Following the issue of the violation, Burnside served a notice Pureform to cure alleged defects as outlined in the lease agreement. The notice of cure gave Pureform fifteen days to resolve the license issues before forfeiture occurred. 

Pureform subsequently moved for a Yellowstone Injunction to toll the length of time to cure the alleged violations. In other words, Pureform sought a pause or delay to the fifteen days stated in the notice of cure. A Yellowstone injunction is a form of relief a commercial tenant can obtain to protect against lease forfeiture. The requirements for obtaining Yellowstone relief are as follows: (1) plaintiff holds a commercial lease, (2) the landlord has served a notice to cure, (3) the referenced cure period has not expired, and (4) plaintiff has to demonstrate an ability and willingness to “cure.” Do you believe that Pureform fulfilled the criterion for a Yellowstone Injunction? How do you think the court ruled in this case?

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Dynamic Business Law

ISBN: 9781260247893

5th Edition

Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs

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