Landlord Didn't Notify Tenant Where Security Deposit Was Held

Landlord sued former tenant for unpaid rent. Tenant, in turn, counterclaimed for return of his $12,750 security deposit. The court ruled against tenant, who appealed and won. Landlord had failed to give tenant notice of the banking institution that held his security deposit. This indicated commingling of tenant's security deposit funds in violation of GOL Sections 7-103(1) and (2), which landlord failed to rebut. A landlord who violates these provisions of the General Obligations Law can't use the security deposit as an offset against unpaid rents or any repair costs that may apply when tenant moves out. Landlord could otherwise proceed with the claim against tenant. 

Baffour v. Calenda: Index No. 570697/19, 2020 NY Slip Op 50386(U)(App. T. 1 Dept.; 4/3/20; Shulman, PJ, Edmead, Torres, JJ)