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United Cable Television of Baltimore Limited Partnership v Louis - courts state md

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The case of United Cable Television of Baltimore Limited Partnership v. Louis Burch et al. addresses the legality of a $5 late fee charged to cable service subscribers. The Maryland Court of Appeals ruled that this fee constitutes a penalty rather than enforceable liquidated damages, as it exceeds the lawful interest rate established by Maryland law. The court determined that damages for breach of a contract to pay money are limited to the principal amount due plus interest at the legal rate, which is set at 6% per annum. Consequently, the court affirmed a judgment against United for excessive late fees collected and ordered a refund to affected subscribers.

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