Carlyle Apartments Joint Venture v. AIG Life Insurance

RODOWSKY, Judge.

This is a certified question case. 1 A mortgagor, as part of a refinancing, voluntarily prepaid a commercial loan in accordance with its terms. The mortgagor now seeks to recover the agreed prepayment fee by arguing that (1) the mortgagor’s performance of the contract should be treated as a breach of contract, (2) the prepayment fee should be treated as liquidated damages, and (3) the prepayment fee is void as a penalty. We do not accept the first step in the mortgagor’s argument. Consequently, we do not reach the remaining steps.

Appellant, Carlyle Apartments Joint Venture…