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Late Payments and Reasonable Attorney's Fees

Food Studio, Inc. v. Fabiola's, 1998 WL 321953 (Conn. Super. 6/16/98). LATE PAYMENTS AND REASONABLE ATTORNEY'S FEES. The Sublessor and Sublessee in this case just did not get along. Sublessor, who was consistently paid rent late by the sublessee, was unable to collect a late payment fee. The court noted that the conduct of the parties prior to trial did not indicate an understanding that a late fee was to be assessed. In addition, the sublease agreement did not contain any remedies for noncompliance with the terms of the lease. Although the sublease stated that it was "subject to the terms for the lease of the premises," the court held that it was not clear which, if any, of the terms of the underlying lease were to be incorporated by reference. As such, the court refused to apply the late payment provisions of the underlying lease to the sublease. The key point-- when creating a sublease, be careful about relying to heavily on the provisions of the underlying lease. MORAL: If you plan on incorporating the original lease into the sublease, its best to specifically mention the provisions to be incorporated.

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