I'm looking into an article I came across online regarding landlords charging "late fees: on rent as high as $50 a day per day that it is late. The article referenced "§1671. Validity of Liquidated Damages Provisions " and used the case Orozco v. Casimiro that the appeals court said late fees were under Liquidated Damages. Am I interpreting this correctly that the "late fee" would then fall under "§3302. Money Payable With Interest" and the amount the landlord is charging is illegal?
1 Answer from Attorneys
Orozco v. Casimiro explains that a late fee that is not a reasonable liquidated damages anticipated by the parties, but rather a penalty, is void and invalid. I don't understand the rest or your question and am not familiar with the particulars of your situation to analyze whether your late fees are proper or improper. You should consult with an attorney in person.