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Contracts Keyed to Epstein
Dobson Bay Club II DD, LLC v. La Sonrisa de Siena, LLC
Citation:
242 Ariz. 108, 393 P.3d 449 (2017)Facts
In 2006, Canadian Imperial Bank of Commerce loaned Dobson Bay Club and related entities $28.6 million for Dobson Bay’s purchase of four commercial properties. The loan was secured by a deed of trust encumbering those properties. La Sonrisa de Siena, LLC bought the note and deed of trust from Canadian Imperial Bank and promptly noticed a trustee’s sale of the secured properties. It contended that Dobson Bay owed more than $30 million, including a nearly $1.4 million late fee. The parties field cross-motions for summary judgment on whether the late fee provision in the note was an enforceable liquidated damages provision or an unenforceable penalty.
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