Tenants Seek Refund of Security Deposit

Former tenants sued landlord for constructive eviction after they moved out of their apartment. They had notified landlord that they were moving out and sought return of their $6,000 security deposit. Tenants later claimed that landlord failed to respond to requests for pretrial questioning and document production, and asked the court to strike landlord's defense and counterclaims. The court ruled against tenants. The bank records tenants sought were needed to determine whether landlord violated the General Obligations Law by failing to keep the security deposit in a separate interest-bearing account, and failing to return the money. Tenants' renewal lease and subsequent tenant's lease also were needed for the case. But landlord's noncompliance with discovery demands didn't rise to the level of noncompliance that required the sanction of barring landlord from raising defenses.

Kusters v. Leffe: Index No. 107700/10, NYLJ No. 1202483472462 (Sup. Ct. NY; 2/16/11; Rakower, J)