Montauk restaurant Grey Lady has been issued a court order to stop secretly operating as a nightclub.
The spot — zoned as a restaurant — has been battling with East Hampton officials for alleged overcrowding and removing seats to make room for a dance floor and up to 300 people.
A judge has issued an order capping the capacity at 68 people.
Town attorney Michael Sendlenski told us: “We are monitoring at the site to make sure they comply . . . if they don’t, then we will seek to have them held in contempt by a judge.”
The spot’s lawyer Carl Irace said, “My clients look forward to defending themselves against these allegations in court.”
Another Montauk hot spot, Ruschmeyer’s, is also in trouble, according to Sendlenski.
Ruschmeyer’s was cited last weekend for having close to 200 people in a room meant for a maximum of 68, he said.