The Michigan Landlord-Tenant Act (Chapter 554) is pretty specific on what the landlord MUST do. I would suggest you read the statute and see what, if any, areas he was NOT in compliance with. A copy of the full statute can be found at:
http://MichiganLegislature.org/law/GetObject.asp?objName=554-609
For example:
"554.603 Security deposit; notice. [M.S.A. 26.1138(3) ]
Sec. 3. A landlord shall not require a security deposit unless he notifies the tenant no later than 14 days from the date a tenant assumes possession in a written instrument of the landlord's name and address for receipt of communications under this act, the name and address of the financial institution or surety required by section 4 and the tenant's obligation to provide in writing a forwarding mailing address to the landlord within 4 days after termination of occupancy. The notice shall include the following statement in 12 point boldface type which is at least 4 points larger than the body of the notice or lease agreement: “You must notify your landlord in writing within 4 days after you move of a forwarding address where you can be reached and where you will receive mail; otherwise your landlord shall be relieved of sending you an itemized list of damages and the penalties adherent to that failure.” Failure to provide the information relieves the tenant of his obligation relative to notification of the landlord of
his forwarding mailing address."
Did the landlord comply with this requirement??
Further:
"554.609 Itemized list of damages; check or money order;
contents of notice of damages. [M.S.A. 26.1138(9) ]
Sec. 9. In case of damage to the rental unit or other obligation against the security deposit, the landlord shall mail to the tenant, within 30 days after the termination of occupancy, an itemized list of damages claimed for which the security deposit may be used as provided in section 7, including the estimated cost of repair of each property damaged item and the amounts and bases on which he intends to assess the tenant. The list shall be accompanied by a check or money order for the difference between the damages claimed and the amount of the security deposit held by the landlord and shall not include any damages that were claimed on a previous termination inventory checklist prior to the tenant's occupancy of the rental unit. The notice of damages shall include the following statement in 12 point boldface type which shall be at least 4 points larger than the body of the notice: “You must respond to this notice by mail within 7 days after receipt of same, otherwise you will forfeit the amount claimed for damages.”."
And finally, the most important to your situation:
"554.610 Effect of noncompliance with notice of damages
requirement. [M.S.A. 26.1138(10) ]
Sec. 10. Failure by the landlord to comply with the notice of damages requirement within the 30 days after the termination of occupancy, constitutes agreement by the landlord that no damages are due and he shall remit to the tenant immediately the full security deposit."
Bottom line, if you provided notice per the lease, and paid rent for the full term of the lease, and provided a change of address in a timely manner, the landlord forfeited ALL rights to the deposit by not contacting you within 30 days.
I would suggest you send the landlord a letter (Certified RRR), citing the above statutes and make a demand for your FULL deposit. Give him 5 days from receipt of your letter to contact you with payment. If he doesn't pay, then take his ass to court.
