Court Awards $3,306 in Fees After Commercial Loan Default
Borrowers with commercial loan agreements may be responsible for lender legal costs in the event of a default judgment.
Updated on Oct. 27, 2026 in Financial Planning
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A Michigan court has awarded $3,305.85 in attorney fees and costs to a plaintiff following a default judgment against Reuben Anthony Solis, El Shop, LLC, and Marcus Anthony Solis. This ruling concludes a legal proceeding regarding unpaid commercial loan obligations.
Why it matters
This award highlights how commercial loan agreements can shift legal expenses to borrowers in default cases. For business owners, these contract clauses mean that legal costs incurred by a lender can be added directly to the total debt balance, increasing the overall liability.
The court awarded $3,305.85 in attorney fees, which the judge determined represents less than 6% of the total judgment. This amount was calculated based on itemized billing statements reviewed against standard industry rates.
The players
Reuben Anthony Solis
A defendant who had a default judgment entered against them regarding commercial loan obligations.
El Shop, LLC
A business entity that had a default judgment entered against it regarding commercial loan obligations.
Marcus Anthony Solis
A defendant who had a default judgment entered against them regarding commercial loan obligations.
The details
The court calculated this award by reviewing the plaintiff’s itemized fee statements against standard billing rates, applying the specific legal criteria established in Pirgu v United Servs. Auto Ass'n. By enforcing the terms of the commercial loan agreements, the court required the defaulting parties to cover the plaintiff’s costs of pursuing the judgment. This ensures the lender is compensated for legal expenses explicitly authorized under the signed credit contract.
Timeline
June 23, 2026: Defaults were entered against Reuben Anthony Solis and El Shop, LLC.
July 23, 2026: A default was entered against Marcus Anthony Solis.
August 4, 2026: The plaintiff moved for entry of default judgment.
September 14, 2026: A hearing was held regarding the motion for default judgment.
Money Landscape
The ruling follows the established analysis criteria from Pirgu v United Servs. Auto Ass'n to ensure fee awards remain proportionate to the underlying debt. It serves as a reminder that courts apply strict scrutiny to legal costs passed on to borrowers during debt recovery.
Business owners should review their loan documents for fee-shifting clauses that obligate them to pay a lender's legal costs if they default. If you face potential default, consult with a qualified attorney to understand how these contract terms impact your total repayment liability.
The takeaway
Commercial loan agreements often include provisions that can significantly inflate your debt through the addition of a lender's legal fees. Always verify the specific 'attorney fee' clauses in any business contract and seek guidance from a qualified financial professional to assess your liability.
Further reading
Learn more about managing credit and debt agreements in Financial Planning.
Source note: This article includes information reported by Michigan Lawyers Weekly.
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Should courts automatically enforce attorney fee provisions in commercial loan agreements when default judgments occur?
