Highgate Associates, Ltd. v. Merryfield

Plaintiff, Highgate Associates, Ltd., the owner of a federally subsidized housing project in Barre, appeals the trial court’s ruling that the late charge provision contained in its lease agreements is void as an unenforceable penalty. We affirm.

Defendant, Lorna Merryfield, occupied an apartment in the project beginning in January of 1986. The lease contained the following provision:

If the Tenant does not pay the full amount of the rent by the end of the 5th day of the month, the Owner may collect a fee of $5.00 on the 6th day of the month, the Owner may collect a fee of $1.00 for each…