Landlord Must Refund Full Disputed Security Deposit

Former tenant of a condominium unit sued landlord in small claims court, claiming that landlord failed to return tenant's $10,000 security deposit after tenant moved out on March 26, 2021. Landlord disputed the vacate date because tenant didn't remove his furniture until May 25, 2021. As a result, landlord claimed tenant owed rent for April and May in the sum of $7,000. Landlord also claimed tenant caused $2,500 in damages to the unit. And while tenant claimed that he was negotiating with landlord's real estate broker for the sale of his apartment furniture, landlord claimed it wasn't aware of any such negotiations.

The court ruled for tenant. General Obligations Law Section 7-108(1-a)(e) provides that within 14 days after a tenant vacates a premises, the landlord must give the tenant an itemized statement indicating why any portion of a security deposit will be retained and not refunded. The GOL also requires that if a landlord fails to provide the tenant with such statement and security deposit within 14 days, the landlord forfeits any right to retain any portion of the deposit. Here, landlord didn't give tenant an itemized statement and deposit refund within 14 days. Tenant also showed that he vacated on March 26. There was no need for tenant to remove his furniture by that date because landlord led him to believe that she was going to buy his furniture. And even if May 25 was the vacate date, landlord still never gave tenant notice in compliance with GOL 7-108. The court awarded tenant the full $10,000 security deposit with interest from April 8, 2021.

Gordon v. Arcadian Corp. N.V.: Index No. SC-016454/21, 2023 NY Slip Op 50152(U)(Civ. Ct. NY; 2/8/23; Parker, J)