Co-Landlord Must Refund Deposit

September 30, 2005

LVT Number: 18405

Tenants sued landlords, who were husband and wife, for return of their security deposit after they moved out of the apartment. The husband had died, and the wife claimed that she didn't have the security deposit. The money had been deposited into a savings account in the husband's name only. The court ruled for tenants. Landlords should have placed the security deposit in a trust account for tenants. Whether by negligence or actual wrongdoing, landlords had improperly converted tenants' security deposit. And husband was wife's agent for treatment of the security deposit.

Tenants sued landlords, who were husband and wife, for return of their security deposit after they moved out of the apartment. The husband had died, and the wife claimed that she didn't have the security deposit. The money had been deposited into a savings account in the husband's name only. The court ruled for tenants. Landlords should have placed the security deposit in a trust account for tenants. Whether by negligence or actual wrongdoing, landlords had improperly converted tenants' security deposit. And husband was wife's agent for treatment of the security deposit. She had to refund the money to tenants.

McMaster v. Pearse: NYLJ, 9/28/05, p. 18, col. 3 (Civ. Ct. NY; Lebedeff, J)

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