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Small Claims Court - Leasing Association

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crash55r

Junior Member
What is the name of your state (only U.S. law)? Hawaii

Great informative site. Thanks to whomever set it up.

Here is our situation.

In late April 2014 we received a lease extension letter for 1 year in the property we were residing in. We signed it, and mailed it back. Happy with it. 6 weeks later we received a certified letter altering the lease to 6 months. We contacted the leasing association and informed them that we already had a legal binding contract for 1 year. They agreed, admitted fault and we thought the case was closed.

The next week the landlords stopped by to do a walk through of their property. No worries. Asked us about the 6 month lease. We informed them that we had signed the 1 year lease (unbeknownst to them). They were not happy but were sympathetic to the situation their leasing association had put us (and them) in. We (the landlord and ourselves) agreed to work something out.

We contacted the leasing association and requested an incentive to move out early in order to accommodate the landlord who planned on moving back in to the property. The leasing association agreed to a contract giving us an incentive to relocate 10 months early. The contract offered us "up to $4000 for actual costs incurred for their early move". The contract also stated that this incentive was for "hardship and moving expenses". Additionally stated in the contract was "hereby fully and forever release any and all claims, demands, causes of action and judgments that they might have or may have either now or on appeal against the Company (leasing association)".

We were also contracted to submit receipts in order to get reimbursed. Our receipts were $700 for movers, $300 for cleaners and $3100 for a security deposit on the new property. We submitted receipts and after 3 weeks had yet to hear anything. A quick email to the Designated Broker (DB) at the leasing association was responded to by, "the check will be in the mail tomorrow". 10 minutes later the DB attempted to recall the email.

2 days later we received a check for $1000. We fired off an email to the DB indicating that the amount was incorrect and not as agreed to in the contract. We also threatened Small Claims Court and us sending letters to all of the realty commissions and the BBB. The reply from the DB was that they would not honor the $3100 receipt for the new property's security deposit as it could possibly be refunded. The DB also sternly warned us of the verbiage "hereby fully and forever release any and all claims, demands, causes of action and judgments that they might have or may have either now or on appeal against the Company (leasing association)".

We have opted to cease communication with the leasing association. We have not cashed the $1000 check. We have printed emails of every correspondence between ourselves and the leasing association, including the recalled email from the DB. We have the signed contract (signed by the CEO and ourselves).

I guess these are the questions?

1) Can we sue even with this in the contract "hereby fully and forever release any and all claims, demands, causes of action and judgments that they might have or may have either now or on appeal against the Company (leasing association)".

2) How would a court of law view the $3100 security deposit in regards to the contract. In our mind, it was an "actual cost associated with their early move". I'm guessing it gets down to actual verbiage as viewed by the moderators/judge.

3) Can we be held liable for attorneys fees if we happen to lose?

4) Is there a way to take this from Small Claims to Civil, or is it even worth it.

Honestly, we never wanted this. We feel we did the right thing by moving early (and in the first week of our 3 children's school year). We just want what was promised to us.

Is it worth the fight? Should we just cash the 1k check and walk away?

Any input or advice is appreciated.

Aloha and Mahalo
 


STEPHAN

Senior Member
E-Mail is always very risky to be used in court, as it can be faked to easily.

I would agree that the security deposit is not "cost". It is a deposit and still your money.
 

TigerD

Senior Member
What is the name of your state (only U.S. law)? Hawaii

Great informative site. Thanks to whomever set it up.

Here is our situation.

In late April 2014 we received a lease extension letter for 1 year in the property we were residing in. We signed it, and mailed it back. Happy with it. 6 weeks later we received a certified letter altering the lease to 6 months. We contacted the leasing association and informed them that we already had a legal binding contract for 1 year. They agreed, admitted fault and we thought the case was closed.

The next week the landlords stopped by to do a walk through of their property. No worries. Asked us about the 6 month lease. We informed them that we had signed the 1 year lease (unbeknownst to them). They were not happy but were sympathetic to the situation their leasing association had put us (and them) in. We (the landlord and ourselves) agreed to work something out.

We contacted the leasing association and requested an incentive to move out early in order to accommodate the landlord who planned on moving back in to the property. The leasing association agreed to a contract giving us an incentive to relocate 10 months early. The contract offered us "up to $4000 for actual costs incurred for their early move". The contract also stated that this incentive was for "hardship and moving expenses". Additionally stated in the contract was "hereby fully and forever release any and all claims, demands, causes of action and judgments that they might have or may have either now or on appeal against the Company (leasing association)".

We were also contracted to submit receipts in order to get reimbursed. Our receipts were $700 for movers, $300 for cleaners and $3100 for a security deposit on the new property. We submitted receipts and after 3 weeks had yet to hear anything. A quick email to the Designated Broker (DB) at the leasing association was responded to by, "the check will be in the mail tomorrow". 10 minutes later the DB attempted to recall the email.

2 days later we received a check for $1000. We fired off an email to the DB indicating that the amount was incorrect and not as agreed to in the contract. We also threatened Small Claims Court and us sending letters to all of the realty commissions and the BBB. The reply from the DB was that they would not honor the $3100 receipt for the new property's security deposit as it could possibly be refunded. The DB also sternly warned us of the verbiage "hereby fully and forever release any and all claims, demands, causes of action and judgments that they might have or may have either now or on appeal against the Company (leasing association)".

We have opted to cease communication with the leasing association. We have not cashed the $1000 check. We have printed emails of every correspondence between ourselves and the leasing association, including the recalled email from the DB. We have the signed contract (signed by the CEO and ourselves).

I guess these are the questions?

1) Can we sue even with this in the contract "hereby fully and forever release any and all claims, demands, causes of action and judgments that they might have or may have either now or on appeal against the Company (leasing association)".
You can pretty much always sue - you have no chance of winning.

2) How would a court of law view the $3100 security deposit in regards to the contract. In our mind, it was an "actual cost associated with their early move". I'm guessing it gets down to actual verbiage as viewed by the moderators/judge.
Your mind is wrong.

3) Can we be held liable for attorneys fees if we happen to lose?
It is possible. If they argue that this is a frivolous suit, which it would be, you could be ordered to pay their attorney's fees.

4) Is there a way to take this from Small Claims to Civil, or is it even worth it.
Yes. And you can be assured that their attorneys would move it to the circuit court level where you don't stand a chance.

Honestly, we never wanted this. We feel we did the right thing by moving early (and in the first week of our 3 children's school year). We just want what was promised to us.
You got what was promised to you. You want more. Wanting more is okay, but you should have negotiated for it.

Is it worth the fight?
No

Should we just cash the 1k check and walk away?
Yes.

DC
 

Gail in Georgia

Senior Member
"The contract offered us "up to $4000 for actual costs incurred for their early move". "

" Our receipts were $700 for movers, $300 for cleaners and $3100 for a security deposit on the new property."


The contract "offered" you up to $4K for ACTUAL costs incurred for the early move. Your actual costs were $1000 since the $3100 for the security deposit always remains your money to be returned to you at the end of the new lease (assuming you pay your rent and do not leave the new rental unit damaged above normal wear and tear).

If you sue, a court will see it this way.

Gail
 

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