As noted by the Kings County Supreme Court, the issuance of a Yellowstone injunction must be based on a declaratory judgment claim. Rental Agreements entered into in 2010 with the understanding that the tenants waive the right to make any representations regarding any rental term or notice sent under the Rental Agreements. Based on that waiver, the tenants’ request for an injunction from Yellowstone was denied. In 2019, the Court of Appeals, in 159 MP Corp v. Redbridge Bedford, LLC (33 NY3d 353), affirmed the ruling of the Appellate Division, Second Department, that the waiver in these leases was enforceable.
Real Estate Law Section 235-h (“Renouncing the Right to Make a Declaratory Judgment”), used to be issued on December 19, 2019. “Eimmediately effective”, there is Which “[n]o Commercial Lease shall contain any provision that waives or prohibits any renter’s right to make any representation with respect to any term, condition or condition of such Commercial Lease. The inclusion of such a waiver in a commercial lease is null and void contrary to public policy.”
Based on the enactment of Section 235-h, the tenants have renewed their previous request to extend a Yellowstone ban. The Kings County Supreme Court rejected the motion, ruling that Section 235-h should not be applied retroactively. 159 MP Corp v. Redbridge Bedford LLC, 2021 NY Slip On 31716, resolved on April 9, 2021: