August 4, 2017 News

Morrison Cohen Successfully Obtains TRO For Client to Prevent Lease Termination

August 4, 2017 – Morrison Cohen successfully obtained a temporary restraining order in a Yellowstone injunction action in New York Supreme Court, Commercial Division.  Morrison Cohen’s client 2 Cooper Square LLC (“Tenant”) possesses a valuable leasehold interest in a luxury high-rise building and landmarked townhouse in the NoHo neighborhood of Manhattan (the “Premises”).  The high-rise contains 21,848 of retail space leased from Tenant by Crunch LLC (“Subtenant”).  Tenant received a notice from 10-12 Cooper Square SM LLC (“Landlord”), the fee owner of the Premises, citing seven summons issued by the New York City Department of Health and Mental Hygiene in connection with a cooling tower installed by Subtenant solely within Subtenant’s subleased space.  The summonses noticed a hearing for August 25, 2017.  In the notice, Landlord threatened to terminate the long-term commercial ground lease between Tenant and Landlord if the violations were not cured by August 15, 2017.

After Landlord refused to rescind the notice, Morrison Cohen, on behalf of Tenant, filed an Order to Show Cause seeking a Yellowstone Injunction and a Temporary Restraining Order to prevent the termination of Tenant’s valuable lease.  Among other things, Morrison Cohen argued that Subtenant had already taken substantial steps to cure the violations and that the hearing on the summonses was scheduled for ten days after Landlord’s deadline for Tenant to cure.  Justice Scarpulla agreed and on August 2, 2017 granted Tenant’s application for a TRO.  Among other things, the TRO restrained and enjoined Landlord from terminating its lease with Tenant.

The Morrison Cohen team included Y. David Scharf, Alvin C. Lin, and Michael Mix.