DEXTER 345 INC. v. Cuomo
2011 U.S. App. LEXIS 24066
| 2d Cir. | 2011Background
- MDL Class A requires long-term occupancy; Class B includes hotels and transient dwellings.
- SROs in Class A buildings may be rented for transient use under certain interpretations.
- Chapter 225 of 2010 prohibited renting any Class A unit for less than 30 days, effective May 1, 2011.
- Dexter House (Dexter 345) and Hotel Alexander (Esplanade) operated as budget hotels with substantial transient rental historically.
- Appellants allege Chapter 225 destroys their budget-hotel business and challenges the takings/due process/equal protection claims.
- District Court denied preliminary injunction; Appellants appealed challenging irreparable injury standard.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Irreparable injury for injunction | Dexter argues Chapter 225 irreparably harms budget-hotel economics. | State contends damages are monetary and not irreparable due to long operating history. | Appellants failed to show irreparable injury. |
Key Cases Cited
- Tom Doherty Assocs. v. Saban Entertainment, Inc., 60 F.3d 27 (2d Cir.1995) (irreparable injury must be actual and imminent; monetary damages may be adequate)
- Nemer Jeep-Eagle, Inc. v. Jeep-Eagle Sales Corp., 992 F.2d 430 (2d Cir.1993) (threat to business continuation can be irreparable, depending on track record)
- Plaza Health Labs., Inc. v. Perales, 878 F.2d 577 (2d Cir.1989) (likelihood of success and irreparable injury framework for injunctions)
- Federal Express Corp. v. Federal Espresso, Inc., 201 F.3d 168 (2d Cir.2000) (abuse of discretion standard for district court in injunction decisions)
- Jackson Dairy, Inc. v. H.P. Hood & Sons, Inc., 596 F.2d 70 (2d Cir.1979) (irreparable harm concept tied to inability to be remedied by money damages)