Commercial Division Blog
Yellowstone Proceeding Found to be Timely
On May 3, 2016, the First Department issued a decision in 117-119 Leasing Corp. v. Reliable Wool Stock, LLC, 2016 NY Slip Op. 03439, holding that a Yellowstone proceeding was timely brought, explaining:
The motion court properly treated the notice of termination as a notice to cure, and properly deemed the period between service of the notice and the termination date set forth therein as the cure period for the alleged defaults, since the lease incorporated by reference the end date of the period set forth in the termination notice as the date by which the lease would be terminated unless the defaults had been remedied.
The application for relief was timely, since it was brought before the expiration of the cure period.
(Internal quotations and citations omitted) (emphasis added).