5% Late Fee Too Excessive

Landlord sued to evict tenant for nonpayment of rent. In its petition, landlord sued for back rent owed and late payment fees equal to 5 percent of tenant's rent. Tenant agreed in court to pay the back rent but objected to the late fees. Landlord argued that tenant's lease provided for payment of a late fee of 5 percent per month if rent wasn't received by the 10th day of the month. The court ruled against landlord. In another case, an appeals court had ruled previously that a 5 percent late fee was unreasonable and unenforceable because the amount was excessive and not reasonably related to the harm done to landlord because of the late payment.

Parkchester Apts. Co. v. Lewis: NYLJ, p. 27, col. 3 (4/22/98) (Civ. Ct. Bronx; Schneider, J)