Landlord Must Return Deposit to Tenant

LVT Number: 12062

Former tenant sued landlord in small claims court for return of her security deposit. The court ruled for tenant, and landlord appealed, claiming that tenant hadn't paid the last two months' rent. Landlord got a judgment against tenant for the amount equal to the security deposit in a nonpayment proceeding and claimed this barred tenant from getting her security deposit back. The appeals court ruled against landlord. Landlord never raised the issue of the nonpayment judgment before the small claims court, so it couldn't raise the issue for the first time on appeal.

Former tenant sued landlord in small claims court for return of her security deposit. The court ruled for tenant, and landlord appealed, claiming that tenant hadn't paid the last two months' rent. Landlord got a judgment against tenant for the amount equal to the security deposit in a nonpayment proceeding and claimed this barred tenant from getting her security deposit back. The appeals court ruled against landlord. Landlord never raised the issue of the nonpayment judgment before the small claims court, so it couldn't raise the issue for the first time on appeal. And tenant's security deposit was never made an issue in the nonpayment proceeding. These were two separate claims. Tenant could get her security deposit back because she proved, against landlord's claim, that she left the apartment in the same condition as when she moved in.

Dyer v. Brookwood Communities, Inc.: NYLJ, p. 32, col. 5 (12/5/97) (App. T. 2 Dept.; DiPaola, PJ, Collins, Ingrassia, JJ)