Trump on the Ocean, LLC v. Ash

81 A.D.3d 713, 916 N.Y.S.2d 177
CourtAppellate Division of the Supreme Court of the State of New York
DecidedFebruary 8, 2011
StatusPublished
Cited by27 cases

This text of 81 A.D.3d 713 (Trump on the Ocean, LLC v. Ash) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trump on the Ocean, LLC v. Ash, 81 A.D.3d 713, 916 N.Y.S.2d 177 (N.Y. Ct. App. 2011).

Opinion

In an action, inter alia, for a judgment declaring the plaintiffs rights and obligations under a lease with the New York State [714]*714Office of Parks, Recreation and Historic Preservation which, inter alia, requires the plaintiff to design, construct, and operate a restaurant at Jones Beach State Park, the defendants appeal from an order of the Supreme Court, Nassau County (Warshawsky, J.), dated August 25, 2009, which (a) granted that branch of the plaintiffs motion which was pursuant to CPLR 6301 to preliminarily enjoin the defendants from demanding or collecting rent, (b) granted that branch of the plaintiffs motion which was pursuant to CPLR 6301 to preliminarily enjoin the defendants from declaring a default under the lease based on the plaintiffs failure to maintain a capital performance bond, and (c) granted that branch of the plaintiffs motion which was for a Yellowstone injunction (see First Natl. Stores v Yellowstone Shopping Ctr., 21 NY2d 630 [1968]) enjoining the defendants from terminating the lease pending the determination of this action and tolling the deadline for the completion of construction.

Ordered that the order is modified, on the law, on the facts, and in the exercise of discretion, (1) by deleting the provision thereof granting that branch of the plaintiffs motion which was pursuant to CPLR 6301 to preliminarily enjoin the defendants from demanding or collecting rent, and substituting therefor a provision denying that branch of the motion, (2) by deleting the provision thereof granting that branch of the plaintiffs motion which was pursuant to CPLR 6301 to preliminarily enjoin the defendants from declaring a default under the lease based on the plaintiffs failure to maintain a capital performance bond, and substituting therefor a provision denying that branch of the motion, and (3) deleting the provision thereof granting that branch of the plaintiffs motion which was for a Yellowstone injunction tolling the deadline for the completion of construction, and substituting therefor a provision denying that branch of the motion; as so modified, the order is affirmed, without costs or disbursements.

The facts leading up to the commencement of the present action are more fully set forth in this Court’s decision and order on a prior appeal in a related proceeding (see Matter of Trump on the Ocean, LLC v Cortes-Vasquez, 76 AD3d 1080 [2010], lv granted 2010 NY Slip Op 90291[U] [2010]). Briefly, in September 2006, Trump on the Ocean, LLC (hereinafter Trump) entered into a 40-year lease with the New York State Office of Parks, Recreation and Historic Preservation (hereinafter OPRHP), which, among other things, required Trump to design, construct, and operate a restaurant and catering facility on the site of the former Boardwalk Restaurant at Jones Beach State Park.

[715]*715After the Hudson Valley Board of Review (hereinafter the Board) denied Trump’s application for a variance from certain provisions of the 2002 edition of the Building Code of New York State, a component of the Uniform Code (see 19 NYCRR 1219.1, 1221.1), pertaining to the construction of a building in a flood hazard area that is subject to high velocity wave action, Trump commenced a hybrid proceeding pursuant to CPLR article 78 to review the Board’s determination and action for specific performance and related injunctive relief against various New York State agencies and government officials. In a judgment dated December 1, 2008, entered upon a decision dated October 21, 2008, the Supreme Court, Nassau County, inter alia, annulled the Board’s determination on the ground that it was arbitrary and capricious. In a decision and order dated September 28, 2010, this Court, by a three-to-one vote, modified the judgment by adding a provision thereto remitting the matter to the Board to grant the variance subject to any reasonable conditions it deemed appropriate and otherwise affirmed the judgment insofar as appealed from (see Matter of Trump on the Ocean, LLC v Cortes-Vasquez, 76 AD3d at 1080).

In March 2009, while the prior appeal was pending before this Court, Trump commenced the present action against OPRHP and several government officials seeking, among other things, declaratory and injunctive relief to suspend certain obligations under the lease, including the obligation to pay rent and maintain a capital performance bond during the period of construction delay. In the order appealed from dated August 25, 2009, the Supreme Court granted those branches of Trump’s motion which were for a preliminary injunction pursuant to CPLR 6301 and for a Yellowstone injunction (see First Natl. Stores v Yellowstone Shopping Ctr., 21 NY2d 630 [1968]).

Although the purpose of a preliminary injunction is to preserve the status quo pending a trial, the remedy is considered a drastic one, which should be used sparingly (see McLaughlin, Piven, Vogel v Nolan & Co., 114 AD2d 165, 172 [1986]). As a general rule, the decision to grant or deny a preliminary injunction lies within the sound discretion of the Supreme Court (see Doe v Axelrod, 73 NY2d 748, 750 [1988]). In exercising that discretion, the Supreme Court must determine if the moving party has established: (1) a likelihood of success on the merits, (2) irreparable harm in the absence of an injunction, and (3) a balance of the equities in favor of the injunction (see Aetna Ins. Co. v Capasso, 75 NY2d 860, 862 [1990]; W.T. Grant Co. v Srogi, 52 NY2d 496, 517 [1981]; Apa Sec., Inc. v Apa, 37 AD3d 502, 503 [2007]; Matter of Merscorp, Inc. v Romaine, 295 AD2d 431, 432 [2002]; Albini v Solork Assoc., 37 AD2d 835 [1971]).

[716]*716The Supreme Court improvidently exercised its discretion in granting those branches of Trump’s motion which were pursuant to CPLR 6301 to preliminarily enjoin the defendants from demanding or collecting rent and to preliminarily enjoin the defendants from declaring a default under the lease based on the plaintiffs failure to maintain a capital performance bond. Since Trump’s alleged damages are compensable in money damages and capable of calculation, Trump failed to establish the element of irreparable harm (see Mar v Liquid Mgt. Partners, LLC, 62 AD3d 762, 763 [2009]; EdCia Corp. v McCormack, 44 AD3d 991, 994 [2007]; SportsChannel Am. Assoc. v National Hockey League, 186 AD2d 417, 418 [1992]). Moreover, Trump failed to demonstrate that the alleged harm was imminent, and not remote or speculative (see Family-Friendly Media, Inc. v Recorder Tel. Network, 74 AD3d 738, 739-740 [2010]; Golden v Steam Heat, 216 AD2d 440, 442 [1995]). Here, the payment of rent and the cost of maintaining the capital performance bond during any period of construction delay caused by OPRHP is measurable and can be compensated by money damages. Moreover, Trump’s vague and conclusory allegations that its principals would suffer harm to their business reputations were not sufficient to establish irreparable injury (see Copart of Conn., Inc. v Long Is. Auto Realty, LLC, 42 AD3d 420, 421 [2007]; Neos v Lacey, 291 AD2d 434 [2002]).

In granting Yellowstone injunctions, however, courts have generally accepted far less than the showing normally required for the grant of preliminary injunctive relief (see Post v 120 E. End Ave. Corp., 62 NY2d 19, 25 [1984]; Garland v Titan W. Assoc., 147 AD2d 304, 307 [1989]). The purpose of a Yellowstone injunction is to maintain the status quo until the merits of . a landlord/tenant dispute are resolved in court

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Kelly v. Muss Dev.
2025 NY Slip Op 50778(U) (New York Supreme Court, Kings County, 2025)
Brighton Leasing Corp. v. Brighton Realty Corp.
2024 NY Slip Op 06325 (Appellate Division of the Supreme Court of New York, 2024)
Skillshare, Inc. v. Miller
2024 NY Slip Op 51268(U) (New York Supreme Court, New York County, 2024)
Berman v. TRG Waterfront Lender, LLC
2020 NY Slip Op 1902 (Appellate Division of the Supreme Court of New York, 2020)
Shake Shack Fulton St. Brooklyn, LLC v. Allied Prop. Group, LLC
2019 NY Slip Op 8438 (Appellate Division of the Supreme Court of New York, 2019)
Emanuel Mizrahi, DDS, P.C. v. Angela Andretta, DMD, P.C.
2019 NY Slip Op 2315 (Appellate Division of the Supreme Court of New York, 2019)
Soundview Cinemas, Inc. v. AC I Soundview, LLC
2017 NY Slip Op 3209 (Appellate Division of the Supreme Court of New York, 2017)
Matter of Armanida Realty Corp. v. Town of Oyster Bay
126 A.D.3d 894 (Appellate Division of the Supreme Court of New York, 2015)
LIDC I, LLC v. Sunrise Mall, LLC
46 Misc. 3d 885 (New York Supreme Court, 2014)
Alayoff v. Alayoff
112 A.D.3d 564 (Appellate Division of the Supreme Court of New York, 2013)
Joseph v. Joseph
108 A.D.3d 597 (Appellate Division of the Supreme Court of New York, 2013)
County of Suffolk v. Givens
106 A.D.3d 943 (Appellate Division of the Supreme Court of New York, 2013)
Orange County Legislature v. Diana
40 Misc. 3d 278 (New York Supreme Court, 2013)
Town of Carmel v. Melchner
105 A.D.3d 82 (Appellate Division of the Supreme Court of New York, 2013)
JT Queens Carwash, Inc. v. 88-16 Northern Blvd., LLC
101 A.D.3d 1089 (Appellate Division of the Supreme Court of New York, 2012)
Board of Managers of the Britton Condominium v. C.H.P.Y. Realty Associates
101 A.D.3d 917 (Appellate Division of the Supreme Court of New York, 2012)
Dover Gourmet Corp. v. Nassau Health Care Corp.
89 A.D.3d 979 (Appellate Division of the Supreme Court of New York, 2011)
Yatauro v. Mangano
32 Misc. 3d 838 (New York Supreme Court, 2011)
Barsyl Supermarkets, Inc. v. Avenue P Associates, LLC
86 A.D.3d 545 (Appellate Division of the Supreme Court of New York, 2011)
Arcamone-Makinano v. Britton Property, Inc.
83 A.D.3d 623 (Appellate Division of the Supreme Court of New York, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
81 A.D.3d 713, 916 N.Y.S.2d 177, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trump-on-the-ocean-llc-v-ash-nyappdiv-2011.