Landlord Must Refund Commingled Security Deposit

February 8, 2012

LVT Number: #23908

Tenant sued landlord for the return of his security deposit and utility deposit after his lease of landlord's home ended. Landlord refused to return the deposits, claiming that tenant breached the lease. The court ruled for tenant. Landlord had commingled the deposits with his own money in violation of General Obligations Law Section 7-103. Landlord's commingling constituted a conversion and required an immediate return of the deposits. And since landlord violated the GOL, he forfeited any right to avail himself of the security deposit for any reason.

Tenant sued landlord for the return of his security deposit and utility deposit after his lease of landlord's home ended. Landlord refused to return the deposits, claiming that tenant breached the lease. The court ruled for tenant. Landlord had commingled the deposits with his own money in violation of General Obligations Law Section 7-103. Landlord's commingling constituted a conversion and required an immediate return of the deposits. And since landlord violated the GOL, he forfeited any right to avail himself of the security deposit for any reason. Landlord must refund the deposits.

Band v. Peters: Index No. 115845, NYLJ No. 1202539604306 (Sup. Ct. NY; 1/3/12; Ling-Cohan, J)

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