Landlord v. Tenant
Rent: 10% Late Fee Excessive
Former tenant sued landlord to recover a security deposit and late fee payments totaling $5,000. Landlord claimed that tenant owed $1,944 in back rent. Tenant showed that he had paid a security deposit of $3,080 and late fees of more than $2,000 under a lease clause assessing a penalty of 10 percent of tenant's rent. The court ruled for tenant and against landlord. Landlord appealed and lost. The court's decision provided substantial justice to the parties. Tenant was entitled to the return of his security deposit.