201 Forest St. LLC v. LBM Fin. LLC (In re 201 Forest St. LLC)

Ruling: 
Court disallowed creditors' claims for excessive default interest and late fees and awarded debtor punitive damages and fees.
Procedural posture: 
Plaintiff debtors objected to claims made by defendants, a lender and its individual owner, on a series of notes and guarantees. Plaintiff's so-called "counterclaims" included that default rates on interest on said notes were unenforceable penalties, that defendants' claims were properly equitably subordinated per 11 U.S.C.S. § 510, that defendants had violated Mass. Gen. Laws Ann. ch. 93A, and that no award under 11 U.S.C.S. § 506 was proper.
Issue: 
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Commercial case opionion summary, case decided on June 30,2009, LexisNexis #0809-116