Landlord Didn't Forfeit Security Deposit Applied to Needed Apartment Repairs

Landlord sued tenant for $12,000 in back rent owed between May and October 2020, as well as for $1,443, which was the amount in excess of the $17,000 security deposit that landlord spent to repair and restore the apartment to move-in condition. Tenant claimed that landlord failed to mitigate damages when tenant broke his lease, and forfeited the security deposit.

The court ruled for landlord without trial, granting a judgment for breach of contract. The court dismissed tenant's defense of failure to mitigate damages.

Tenant appealed and lost. Landlord showed that rent remained unpaid and took immediate reasonable and customary actions to list the apartment for rerental. A broker wasn't required. Contrary to tenant's claim, landlord didn't forfeit the security deposit by its failure to provide tenant with written notice of his right to request landlord's inspection of the apartment before moving out. This forfeiture was required by General Obligations Law Sections 7-103(1) and 7-108(1-a), (b), (d), and (e) only when a landlord doesn't provide an itemized statement of claimed repairs justifying retention of part or all of the security deposit.

14 E. 4th St. Unit 509 LLC v. Toporek: Index No. 150250/21, App. No. 14954, 2022 NY Slip Op 00002 (App. Div. 1 Dept.; 1/4/22; Gische, JP, Mendez, Shulman, Pitt, JJ)