A state Supreme Court judge overturned the city's ban on plastic foam containers Tuesday.
The judge says Sanitation Commissioner Katheryn Garcia didn't properly take into account recycling opportunities during a year-long review period.
She noted industry estimates that 21 companies would buy used containers from the city.
The judge says as much as 75 percent could be recycled if machinery at landfills are upgraded.
The leader of a coalition of business owners suing the city over the ban says the group is ready to move forward on the issue.
"We have said to them all along, work with us. We will recycle everything. All styrofoam. More business owners have said that their market -- the type of fees they would have to pay for alternate products to use was gonna go up 50 to 100 percent," says leader Robert Jackson.
Meanwhile the de Blasio administration says it disagrees with the ruling, and is reviewing options to keep the ban in effect.