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RAFFEL v. MEDALLION KITCHENS OF MINNESOTA, INC.

Nos. 97-1714, 97-1805.

139 F.3d 1142 (1998)

Leslie J. RAFFEL, Plaintiff-Appellant/Cross-Appellee, v. MEDALLION KITCHENS OF MINNESOTA, INCORPORATED, a Minnesota corporation, Defendant-Appellee/Cross-Appellant.

United States Court of Appeals, Seventh Circuit.

Decided March 24, 1998.

Attorney(s) appearing for the Case

James K. Gardner, David A. Eide (argued), Neal, Gerber & Eisenberg, Chicago, IL, for Leslie J. Raffel in No. 97-1714.

Arthur M. Martin, Patrick Phillips (argued), Chicago, IL, for Medallion Kitchens of Minnesota, Inc.

David A. Eide (argued), Neal, Gerber & Eisenberg, Chicago, IL, for Leslie J. Raffell in No. 97-1805.

Before CUMMINGS, BAUER and ROVNER, Circuit Judges.

ROVNER, Circuit Judge.

Sometimes in litigation, neither side wins. This is one of those times. The parties dispute the enforceability, in a commercial lease, of a provision granting an $81,648 windfall to the lessor if the lessee fails to pay the rent within thirty days after notice is given of a failure to pay rent timely. We agree with the district court that the provision amounts to a penalty, and that penalties are disfavored...

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