[CLBS] Question

[Susan R. Wilson]

All,

I have a client who owns an apartment complex and has a no-party provision
in their lease. They want to include in their lease a fine of $500 for
violating the provision on a first offense and $600 on a subsequent offense.
I haven't dealt with leases that assess different 'fines' for different
violations of the lease. I have late fees of course and insufficient funds
charges, lockout charges, etc. but not separate fines per se.

I have some concerns regarding the 'fines' and whether they would be
enforceable, particularly if there are no damages, no nuisance complaints,
etc. 

Can anyone give me some direction on the enforceability of having 'fines'?
I'm concerned they will appear punitive in a contract claim, when you
typically can't get punitive damages and there is a decidedly lack of
correlation between the amount of the fine and any 'damages' the owner may
suffer. However, I know that the parties are 'free to contract'.

Any and all thoughts would be appreciated.

Thanks,
Susan

Susan R. Wilson
Attorney at Law, PLLC
208 S. Main St. Ste 2
Moscow, ID 83843
sw2 at moscow.com
208-882-8060
866-221-9397 (fx)
 
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