Legal Question in Landlord & Tenant Law in Washington
Limits on late fees
I filed a ~$1000 small claim against a tenant for nonpayment of rent and for damages to the rental unit.
When we arrived in court we were offered and accepted mediation services by the court. The tenant agreed that he owed the full amount and agreed to pay it in installments ($50 every 10th and 25th of the month). At this rate, the debt would be paid in 10 months.
The mediator suggested a $5/day late fee that was cumulative. Each payment would carry its own $5/day fee. So, if the tenant got 10 payments behind, late fees would accrue at $50/day.
The tenant agreed and a contract/promissory note was written up and signed by all parties. The case was continued and a hearing date set for 8/2/2006 at which time the debt should have been paid in full (assuming of course that all the $50 payments were made).
The tenant never made a single payment and is now 19 payments behind, accruing late fees at $95/day. Needless to say, the total owing now far exceeds the small claims limit of $4000.
I don't have any desire to exceed $4000, but can I get a judgment of $4000? Do usary laws apply to fees or only interest? I didn't stipulate interest.
1 Answer from Attorneys
Re: Limits on late fees
Your instincts are correct. I sincerely doubt that the Court is going to enforce the agreement for penalties on late fees as the interest is exorbinant.
You should go to court on the 2nd; you should present your case. ONLY if you have a signed mediation agreement - signed by both parties and the mediator - should you offer it into evidence as proof of the Defendant's admission that they owe you money.
The Court is free to make any decisions it wants regarding pre-judgment interest.
Your remedy is to wait 30 days after the judgment has been entered, then transfer the matter to superior court (Transcript of Judgment) for enforcement and collection.
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