Dobson Bay Club II DD, LLC v. La Sonrisa De Siena, LLC

OPINION

BROWN, Judge:

¶ 1 Dobson Bay Club II DD, LLC, et al. (“Dobson Bay”) appeals the trial court’s entry of partial summary judgment in favor of La Sonrisa De Siena, LLC (“La Sonrisa”) on Dobson Bay’s claim for declaratory relief concerning the enforceability of a late fee provision in a promissory note. The sole issue before us is whether the court erred in concluding La Sonrisa is entitled to recover a $1.4 million late fee on Dobson Bay’s delinquent balloon payment as liquidated damages. For the following reasons, we hold that the late fee constitutes a penalty and is therefore…