Tenant Not Entitled to Interest

May 31, 1996

LVT Number: 10672

Former tenant sued landlord to recover security deposit. The small claims court ruled for tenant and also awarded him 3 percent interest. Landlord appealed, asking the court to delete the award of interest. The court ruled for landlord. Tenant's building contained fewer than six apartments, so there was no legal requirement that his security deposit be placed in an interest-bearing account. There was no proof that tenant's oral rental agreement made such a provision or that the security deposit was ever placed in such an account.

Former tenant sued landlord to recover security deposit. The small claims court ruled for tenant and also awarded him 3 percent interest. Landlord appealed, asking the court to delete the award of interest. The court ruled for landlord. Tenant's building contained fewer than six apartments, so there was no legal requirement that his security deposit be placed in an interest-bearing account. There was no proof that tenant's oral rental agreement made such a provision or that the security deposit was ever placed in such an account.

Williams v. Brand: NYLJ, p. 32, col. 3 (5/3/96) (App. T. 2 Dept.; Collins, JP, Ingrassia, Luciano, JJ)

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