§1172. Required response of lessee to notice; effect of response
The lessee shall have thirty days after receipt of the required notice to pay the rent or
royalties due or to respond by stating in writing a reasonable cause for nonpayment. The
payment or nonpayment of the rent or royalties or stating or failing to state a reasonable
cause for nonpayment within this period has the following effect on the remedies of
dissolution and damages:
(1) If the lessee pays the rent or royalties due within thirty days of receiving the
required notice, the remedy of dissolution shall be unavailable unless it is found that the
original failure to pay was fraudulent. The lessee also remains liable for interest from the
time the payments were due under the lease.
(2) If the lessee pays the rent or royalties due within thirty days of receiving the
required notice but the original failure to pay rent or royalties was either fraudulent or willful
and without reasonable grounds, the court may in its discretion award as additional damages
an amount not to exceed the amount of rent or royalties that were not timely or properly paid,
interest on that sum from the date due, and reasonable attorney fees. In all other cases, such
as mere oversight or neglect, damages shall be limited to interest on the rent or royalties
computed from the date due and reasonable attorney fees if the interest is not paid within
thirty days of the written demand.
(3) If the lessee fails to pay rent or royalties due and fails to inform the lessor of a
reasonable cause for failure to pay in response to the required notice, the court may dissolve
the lease. In addition, the court may award as damages the amount of rent or royalties due,
interest on that sum from the date due, and reasonable attorney fees, regardless of the cause
for the original failure to pay.
(4) The parties may stipulate a time period longer than thirty days within which the
lessee shall pay rent or royalties due following written notice for payment thereof by the
lessor, but in no circumstance shall the time period be greater than sixty days from delivery
of the written notice to the lessee.
Acts 2023, No. 455, §1, eff. June 28, 2023.