Sued for security deposit

[Sam6981]

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


Hi there,

I have been first time sued in small claim court for return of deposit.

Here is the whole picture-->

I kept this guy as my room-mate in May. Lease is on my name and I don't have any written agreement with him. It was a verbal month to month agreement.

At the time of move-in, this guy paid me security deposit ($800) and first month rent ($800) by check. He kept it paying on time via online bank transfer.

In aug he informed his mom is coming and will live with her, so I gave him 30 day notice (via email) to vacate the apartment. When I asked him for aug rent, he emailed me that I can adjust security deposit as rent. Since I don't have any written agreement with him, I insisted on security deposit , so he made an online transfer of $400 stating security deposit for the apartment. By mid of month, this guy mom and family came and started living in his room. I insisted that only he can live in the apartment and not his family, and this led to a verbal altercation with him and his family. Therfore I called building security and asked them to move him out of apartment, since he was threatning me. Also at the time I gave him two check for $400( recent security deposit) and $800 (security deposit when he moved initially). I banned him and his family from entering the apt and building security told him that he can only enter in the bldg in the presence of a cop. He came with cops to collect his stuff.

He encashed $400 check, but I made a payment stop on $800 check, since he didn't gave me that month rent.

This guy now sued me in small claim court, stating I stopped payment on check and didn't returned his security deposit.($800).

What are my chances of defending myself. Thanks and appreciate all your help.



~SAM

 

[LdiJ]

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


Hi there,

I have been first time sued in small claim court for return of deposit.

Here is the whole picture-->

I kept this guy as my room-mate in May. Lease is on my name and I don't have any written agreement with him. It was a verbal month to month agreement.

At the time of move-in, this guy paid me security deposit ($800) and first month rent ($800) by check. He kept it paying on time via online bank transfer.

In aug he informed his mom is coming and will live with her, so I gave him 30 day notice (via email) to vacate the apartment. When I asked him for aug rent, he emailed me that I can adjust security deposit as rent. Since I don't have any written agreement with him, I insisted on security deposit , so he made an online transfer of $400 stating security deposit for the apartment. By mid of month, this guy mom and family came and started living in his room. I insisted that only he can live in the apartment and not his family, and this led to a verbal altercation with him and his family. Therfore I called building security and asked them to move him out of apartment, since he was threatning me. Also at the time I gave him two check for $400( recent security deposit) and $800 (security deposit when he moved initially). I banned him and his family from entering the apt and building security told him that he can only enter in the bldg in the presence of a cop. He came with cops to collect his stuff.

He encashed $400 check, but I made a payment stop on $800 check, since he didn't gave me that month rent.

This guy now sued me in small claim court, stating I stopped payment on check and didn't returned his security deposit.($800).

What are my chances of defending myself. Thanks and appreciate all your help.



~SAM

That was a little confusing. I suspect that you will get better advice if you give a more specific timeline.

 

[Sam6981]

Guy moved-in->May '11
July 23rd -> he emailed he is calling his mom
July 31st -> I emailed him to vacate the apt by Aug 31
Aug 5 -> I reminded him of rent
Aug 5-> he emailed back saying can adjust in rent
Aug 6-> on further insistance, he gave me another $400 as security deposit via online transfer
Aug 15-> his mom came in , and after verbal altercation and his threats I called bldg security and moved him/family out. Gave him two check for ($400) and $800
Aug 16-> he encashed $400 check, but I stopped payment on $800 because he haven't paid rent and utilities for aug
Aug 17-> he came in presence of cops, to take out his belongings

 

[LdiJ]

Guy moved-in->May '11
July 23rd -> he emailed he is calling his mom
July 31st -> I emailed him to vacate the apt by Aug 31
Aug 5 -> I reminded him of rent
Aug 5-> he emailed back saying can adjust in rent
Aug 6-> on further insistance, he gave me another $400 as security deposit via online transfer
Aug 15-> his mom came in , and after verbal altercation and his threats I called bldg security and moved him/family out. Gave him two check for ($400) and $800
Aug 16-> he encashed $400 check, but I stopped payment on $800 because he haven't paid rent and utilities for aug
Aug 17-> he came in presence of cops, to take out his belongings

You shouldn't have given him the 800.00 check, that could hurt you. You also didn't evict him in the legal manner, and that could hurt you as well. All you can do is show up in court and explain your story, and let the judge decide.

 

[sandyclaus]

I see two BIG problems.

First, you called bldg security and moved him/family out. While you may have given him written notice to terminate his tenancy, that did NOT give you the right or authority to force him out of the property. He was NOT trespassing. The law calls what you did an illegal eviction, and that could most definitely hurt you. You are not allowed to remove the tenant on your own, nor remove his property, or lock them/block their access to the rented premises without a court order, which you cannot obtain without going through the formal eviction process.

Second, you should NEVER have stopped payment on the $800 check. By doing that, you have now created a criminal offense against you by giving the tenant a bad check. Your recourse would have been to sue THEM for the unpaid rent in court yourself. Instead, by doing it the way you have, the tenant is now entitled to the face amount of the check, attorney fees, court costs, costs of mailing a demand for payment, and damages in an amount equal to $100.00 or triple the amount of the check, whichever is greater, but not to exceed $500.00.

You MIGHT be able to file a counterclaim for the unpaid rent amount, but that might open up the tenant's claim of an illegal eviction. Not only is it considered a criminal offense of disorderly conduct now, but there may be additional civil penalties due to a tenant who is subjected to an illegal eviction by their LL.

Unfortunately, due to your bad judgment, the best thing you can do now is to give the tenant back the $800 and write the rest off. You have no one but yourself to blame for putting yourself in this position.