Late Fee Based on Percentage of Rent Ruled Unconscionable

March 1, 2011

LVT Number: #23228

Landlord sued to evict tenant for nonpayment of rent. Landlord sought two months' back rent, attorney's fees, plus a 10 percent late charge. The court ruled for landlord in part. Landlord was entitled to the rent arrears and attorney's fees. But a percentage late fee, totaling $160, without any actual costs or expenses incurred by landlord, was unconscionable and couldn't be included in the money judgment.

Landlord sued to evict tenant for nonpayment of rent. Landlord sought two months' back rent, attorney's fees, plus a 10 percent late charge. The court ruled for landlord in part. Landlord was entitled to the rent arrears and attorney's fees. But a percentage late fee, totaling $160, without any actual costs or expenses incurred by landlord, was unconscionable and couldn't be included in the money judgment.

North Clinton Associates v. Rehman: NYLJ, 2/23/11, p. 17, col. 3 (Dist. Ct. Suffolk; Goglas, J)

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