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

Dobson's (defendant's) $28.6 million loan included a flat 5 percent late fee that applied identically regardless of how late a payment actually was, and after La Sonrisa (plaintiff) purchased the note and sought roughly $1.4 million under that fee, Dobson challenged its enforceability; the superior court granted La Sonrisa partial summary judgment, but the court of appeals reversed, finding the fee unenforceable as a matter of law, and the Arizona Supreme Court granted review.