Michael Bagby
v.
First Street Deli II, LLC, Kim Harker, and Alexis Brown
Appellant
Michael Bagby
Appellee
First Street Deli II, LLC, Kim Harker, and Alexis Brown
Attorneys for the Appellant
Benjamin M. Lange
Austin McMahon
Attorney for the Appellee
Jeremy B. Hahn
Court of Appeals
Court of Appeals Opinion
Opinion Number:
Date Published:
Summary
Appeal from the Iowa District Court for Buchanan County, Richard D. Stochl, Judge. REVERSED AND REMANDED. Considered by Schumacher, P.J., and Chicchelly and Buller, JJ. Opinion by Chicchelly, J. (7 pages)
Michael Bagby appeals the district court ruling dismissing his claims for breach of contract and unjust enrichment. Bagby’s debtors—First Street Deli II, LLC (the LLC) and Kim Harker and Alexis Brown, individually and as members of the LLC—argued that their contract with Bagby was unconscionable and its late-fee provision was a penalty against public policy. Bagby argues the district court erred in finding that the contract was unconscionable and the late-fee provision was an unenforceable penalty. OPINION HOLDS: Finding errors of law in both the unconscionability and penalty analyses, we reverse and remand to the district court for entry of an order consistent with this opinion.
