Heads Up Landlords: Security Deposit Law 101
Small claims court always gives me the creeps because of the lack of basic rules of evidence (like a bar to hearsay), but I love small claims because the issues are small and simple, so justice tends to be swift and true.
Another problem with small claims is they seldom ever get appealed, so as far as decisions go, you do not wee much of them. Landlord/tenant law is left to the realm of small claims. There are many folks out there who own rentals as an investment, and many of them do not know much about real estate, business nor the law.
Today, the Court of Appeals offers an introductory lesson on Indiana’s Security Deposit Law (IC 32-31-3), throughCathy Durf v. Harold & Doris Molter. So, pay attention:
The landlord must provide a tenant with written notice of the damages within forty_five days of the termination of the rental agreement and delivery of possession. The tenant must provide the landlord with a mailing address in which to deliver this notice. If the landlord fails to comply the tenant is entitled to return of the entire security deposit and reasonable attorney fees. . .The failure to comply with the notice of damages requirement constitutes an agreement by the landlord that no damages are due.
Here, the Landlord sued for possession, got the tenant out, and then went after the damages, but never sent the notice of damages to the tenant. The trial court gave the landlord the damages anyway, but the Court of Appeals says “no,” no notice = no damages.
December 30th, 2005 13:57
Seems like kind of a no-brainer. I wonder how the trial court judge screwed that one up.
December 30th, 2005 14:05
I don’t know, Doug. I imagine that the judge did what judges frequently do in small claims court: ignore the law and try to do what seems right in the circumstances.
The thing about small claims courts, landlords may have been getting over on this type of thing for years, but no one ever bothered to spend the cash and time to appeal it.
I mean, a $1,900 judgment? Could you do an appeal for under $1,900 even if the other side did not respond?
December 30th, 2005 14:35
It’d just mean I blog a little less. And that appeal would be only about two pages long. Something like:
Landlord didn’t send itemized statement. Judge awarded landlord damages. Law says failure to provide itemization constitutes an admission that there are no damages. Please reverse.
February 16th, 2006 17:35
What I have learned in our Judicial system is that small dollar conflicts are usually resolved under the premise of what seems fair and equitable. This is unless the law is quoted to the judge or there is a precedent to be followed.
Randy
http://www.4mysales.com