NYC restaurant drops suit over indoor dining restrictions

A Queens restaurant that sued over indoor dining restrictions — and later lost its liquor license for hosting a maskless party — has dropped its case against the state after the governor announced he is expanding city restrictions to half capacity, new court papers show.

Il Bacco, in Little Neck, sued in August, claiming rules barring city restaurants from opening for indoor dining were causing them to lose business to Long Island restaurants just a block away that didn’t face the same limitations.

On Wednesday, Gov. Andrew Cuomo announced that starting on March 19, city eateries could open for indoor dining at 50 percent capacity — up from 25 percent since mid-February.

The move prompted Il Bacco to drop its case Thursday against the state and the city, court papers show.

Il Bacco had its liquor license suspended in December for allegedly hosting a holiday party for a Republican club where patrons didn’t wear masks. Three coronavirus cases were reportedly linked to the event.