How do commercial lease disputes reach litigation in New York?
On Behalf of Marcus, Gould & Sussman, LLP | Mar 30, 2026 | Commercial Real Estate |
A commercial lease is a contract, and like any contract, problems can arise when one side fails to hold up its end. In New York, the lease itself controls most of the rights and remedies available to landlords and tenants. Unlike residential leases, commercial tenants have far fewer statutory protections. That makes the language in the lease critical when a dispute moves toward court.
Common triggers for commercial lease disputes
Most commercial lease conflicts fall into two categories: monetary defaults and nonmonetary defaults. Monetary defaults typically involve unpaid rent or failure to cover expenses like taxes or insurance that the lease assigns to the tenant. Nonmonetary defaults can include unauthorized use of the space, subletting without consent or causing damage to the property.
The lease should spell out what counts as a default, what notice the landlord must give and how much time the tenant has to fix the problem. These terms vary from lease to lease. A poorly drafted clause can leave either party exposed.
Notice and cure requirements before filing suit
New York does not give commercial tenants a broad statutory right to notice and cure. Instead, those rights come from the lease. Most commercial leases include a notice to cure provision that gives tenants a set window to fix the default.
For nonmonetary defaults, 30 days is typical. For rent defaults, New York law requires landlords to serve a written 14-day demand for payment before starting a nonpayment proceeding, regardless of shorter cure periods in the lease.
How these cases reach court
When a tenant fails to cure a default, the landlord can file a summary proceeding in the local City, Town, or Village Court to regain possession of the space. A landlord can also bring a real estate dispute as a breach of contract action in Supreme Court, which allows for broader discovery and counterclaims. The choice of court depends on what the landlord is seeking: possession, damages, or both.
A Yellowstone injunction is a crucial New York legal mechanism enabling commercial tenants to pause a lease termination notice — the notice to cure — while litigation determines if a default actually occurred. It prevents eviction by tolling the cure period, allowing tenants to retain their space while disputing the landlord’s claims in court. An application for such an injunction must be filed in Supreme Court and must be filed before the cure period stipulated in the landlord’s notice expires.
Why lease language shapes every outcome
The strength of either side’s position depends on what the lease says. Vague default provisions, missing cure periods and unclear remedies create room for costly disagreements. Commercial tenants and landlords in Westchester County and the broader New York area benefit from having clear, well-drafted lease terms reviewed before disputes arise rather than after.
