Three Amigos SJL Rest., Inc. v. Alphonse Hotel Corp., 250 West 43 Owner LLC, 250 West 43 Owner II LLC, 250 West 43 Owner III LLC, and Athene Annuity and Life Company

Rosenberg & Estis, P.C. successfully represented the owners, defendants 250 West 43 Owner LLC, 250 West 43 Owner II, LLC and 250 West 43 Owner III, LLC, against the tenant, Three Amigos SJL Restaurant Inc., before the Appellate Division, in the vacating of a Yellowstone injunction granted in 2015 to a tenant that rented space in a hotel owned by the client. The decision allows for the eviction of the tenant, a gentlemen’s club, and also included an important ruling on Yellowstone relief that may prove important in later decisions. “Due to the court’s finding, the termination of the tenant’s lease, which included options through 2026, was upheld,” said Norman Flitt. “This was a major victory for our client, because the tenant was occupying a large portion of the ground floor, and its continued occupancy under the Yellowstone injunction was preventing the owners from completing renovations to the ground floor, the lobby and the entire building.” This decision will likely impact future cases, as it clarifies when a tenant needs to make an application for Yellowstone relief, and the showing that a tenant must make if it moves for Yellowstone relief after a termination notice has been served.

(Appellate Division, Decided November 15, 2016)
(Rosenberg & Estis, P.C. Team: Norman Flitt)