Tenant Claims Security Deposit Improperly Commingled

May 31, 2011

LVT Number: #23433

Tenant sued landlord to recover her $3,800 security deposit. Tenant claimed that landlord and its officer individually commingled her security deposit with the company's general funds. The court dismissed the complaint as to the individual corporate officer. Tenant appealed and won. Landlord's corporate officer may be personally liable if he participated in conversion of the funds. The complaint was reinstated against him and the matter referred for a discovery conference. If landlord commingled tenant's security deposit with its general funds, tenant has a right to immediate recovery.

Tenant sued landlord to recover her $3,800 security deposit. Tenant claimed that landlord and its officer individually commingled her security deposit with the company's general funds. The court dismissed the complaint as to the individual corporate officer. Tenant appealed and won. Landlord's corporate officer may be personally liable if he participated in conversion of the funds. The complaint was reinstated against him and the matter referred for a discovery conference. If landlord commingled tenant's security deposit with its general funds, tenant has a right to immediate recovery.

Jeffrey v. J.I.M. Management Co., Inc.: 31 Misc.3d 141(A) (App. T. 2 Dept.; 5/3/11; Nicolai, PJ, Molia, Iannacci, JJ)

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