19 Oct 2015
TORCHLIGHT FUND NO.1 LP (IN RECEIVERSHIP) v JOHNSTONE & ORS [2015] NZHC 2559
- Citation
- [2015] NZHC 2559
- Court
- High Court
The Late Payment fee was imposed in terrorem and constituted a collateral penal stipulation that was extravagant and out of proportion to the loss likely to be caused by late repayment (limited to lender's cost of funds/interest exposure), therefore the clause was an unenforceable penalty; accordingly late payment charges were struck down but the primary facility fee and contractual interest and receivers' costs under the indemnity were recoverable.