Tenant Entitled to Return of Commingled Security Deposit Despite Breach of Lease

November 18, 2016

LVT Number: #27322

Tenant sued landlord and prior landlord for recovery of his security deposit. The court ruled against tenant, who appealed and won. Landlord’s failure to give tenant written notice of what bank held tenant’s security deposit permitted an inference of commingling of the security deposit at the time of tenant’s lease expiration. Landlord didn’t rebut this inference, so tenant was entitled to immediate return of the deposit even though he may have breached his lease. 

 

 

Tenant sued landlord and prior landlord for recovery of his security deposit. The court ruled against tenant, who appealed and won. Landlord’s failure to give tenant written notice of what bank held tenant’s security deposit permitted an inference of commingling of the security deposit at the time of tenant’s lease expiration. Landlord didn’t rebut this inference, so tenant was entitled to immediate return of the deposit even though he may have breached his lease. 

 

 
Milkie v. Guzzone: 2016 N.Y. Slip Op. 06806, 2016 WL 6089194 (App. Div. 2 Dept.; 10/19/16; Dillon, JP, Roman, Hinds-Radix, Duffy, JJ)

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