In a commercial lease dispute, the landlord will almost always insist on recouping every single dollar of late fees, as provided for in the lease, which are incurred as a result of a tenant’s default in the payment of the rent and “additional rent” due and owing under the lease.

On the other hand, the tenant will contemporaneously resist paying these additional fees. Notwithstanding the stipulated lease clauses to the contrary, when opposing the landlord’s claim, it is anticipated that the tenant will likely argue that the late fees are unconscionably excessive and disproportionate to the amount owed.