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Dobson Bay Club II DD, LLC v. La Sonrisa de Siena, LLC
Arizona Supreme Court
393 P.3d 449 (2017)
- Written by Sean Carroll, JD
Facts
Dobson Bay Club II DD, LLC (defendant), received a $28.6 million loan from a bank. The loan provided for payment of default interest and collection costs, and a 5 percent late fee on late payments. La Sonrisa de Sienna, LLC (plaintiff), purchased the note and deed of trust from the bank and held a trustee’s sale. La Sonrisa claimed that Dobson owed it approximately $30 million on the note, including a $1.4 million late fee. Dobson argued that the late fee was not enforceable. The superior court disagreed and granted Sonrisa partial summary judgment. The court of appeals reversed, finding as a matter of law that the late fee was unenforceable. The Arizona Supreme Court granted review.
Rule of Law
Issue
Holding and Reasoning (Timmer, J.)
Dissent (Bolick, J.)
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