Security deposit and small claims court

What is the name of your state (only U.S. law)? Montana

Our former landlord has been holding our deposit for nearly 2 months, claiming that she is "waiting on bills to come back". She has already broken several laws, including the law stating that she must provide written notice of damage and allow time for us to repair it.

In any case, we received a check for less than half the deposit, and we want to go to court for the rest. However, we have been desperately waiting on this money, so we can pay bills and get groceries, etc.

The question: Can we cash the check we received and still file for the remainder or are we going to lose out on the rest of what we are owed?

Thanks!

Maybe. It depends.

If the check says "Paid in Full" or other notes or refers to an attached note, then no. If there is such a message by cashing the check means you agree to those terms.

See Unified Commercial Code 3-311,
U.C.C. - ARTICLE 3 -§3-311.

If there is nothing written on the check signifying this is a final payment or any terms or conditions, you may cash it and still claim the difference owed.

Good luck.

Write a letter to the landlord stating the landlord CAN-NOT keep part of your Sec. Deposit because he/she did not follow the Laws within 30 days .

Demand it's entire amount .

Send the letter RRR Certified mail . Make sure again to include your new address .

The question is fairness under the Law .

We need to know if there's a notation to the effect the LL is trying to send you under 1/2 the amount with paid in full or some such ?

If the check does require a restrictive endorsement, you can just cross it off and cash the check. A restrictive endorsement does not prevent further negotiation of the instrument under the Uniform Commercial Code. A restrictive endorsement cannot override the provisions of a valid contract.

Mr. Fusion said:

Maybe. It depends.

If the check says "Paid in Full" or other notes or refers to an attached note, then no.

Click to expand...

Gotta disagree with you on this one. The key phrase is "Good Faith"

The LL KNOWS they are in the wrong (or, reasonably SHOULD know, as they are in the business of landlording). So, issuing a check for less than the amount legally due the tenants is not "Good Faith"