Plaza Motors lost its bid for a preliminary injunction in its court fight against coronavirus-related restrictions, but its lawsuit against New York Gov. Andrew Cuomo and New York City Mayor Bill de Blasio continues.

U.S. District Judge William Kuntz ruled Jan. 22 that the five-franchise dealer group “failed to satisfy the requirements for the court to issue a preliminary injunction.”

The lawsuit, which also names a state economic development agency, was filed in October after Cuomo designated the dealership’s neighborhood in Brooklyn as a red zone. That limited Plaza Motors’ ability to conduct business by forcing remote and appointment-only sales. Since the suit was filed, the neighborhood has been downgraded to a yellow zone, lifting the restrictions.

A red zone is a region in New York that is 21 days from reaching 90 percent hospital capacity on the current 7-day growth rate, according to New York Forward. A yellow zone has a 3 percent positivity rate and is in the top 10 percent in the state for hospital admissions.

In November, Adam Rosatti, Plaza’s general manager, told Automotive News that competitors within walking distance of his store were not under the same limitations because they weren’t technically in a red zone.

The retailer, based in Brooklyn, is seeking unspecified damages for sales lost while the stricter measures are in place.

“The lawsuit against Cuomo, de Blasio and the state economic agency has not been dismissed. The court merely denied the plaintiffs’ motion for a preliminary injunction,” Plaza Motors attorney Jamie Felsen said in a statement. “The case is now proceeding to discovery as the court denied the defendants’ motion for a stay pending the outcome of their pending motion to dismiss.”

Cuomo’s office didn’t immediately respond to a request for comment.

Court filings state this is not the first case challenging government restrictions in New York amid the pandemic. Churches and synagogues have argued limitations violated their First Amendment rights.

“Document demands have been served by the plaintiffs on Cuomo, de Blasio and the state economic agency and we look forward to receiving their response and then deposing them and ultimately proving and recovering the substantial damages that my clients suffered when they were unlawfully prohibited from selling automobiles in person,” Felsen said.