This video provides a crucial lesson in contract law by distinguishing between actual damages and arbitrary penalties in security deposit disputes. It correctly emphasizes that the burden of proof lies with the landlord, serving as a vital check against unauthorized financial deductions.
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Losing ItAdded:
This is the plaintiff, Helena Bruss. She says she rented a studio apartment from the defendant, who she later found out could be quite explosive and hottempered. She couldn't deal with the huge mood swings and decided to move out of there before something bad happened and now can't get her security back. To think she invited the defendant to drink wine with her. And now this. She's suing for $1,450, the amount of her security.
This is the defendant, Diane. She says the woman sent her an email stating she'd be moving out in 2 weeks, and she told her that was not acceptable and she'd not be getting her security back.
On top of that, she didn't follow the condo rules when she moved out, got into a fight with them, and now she's on the hook to pay a $500 fine. She's accused of losing it.
>> Okay. Helena Bruce, you are suing Diane.
You've asked us not to refer to your last name. We'll respect that for $1,450 a sec of security deposit, which according to you, she has wrongfully withheld. Tell me what's going on here.
>> Yes. In um August, I located an apartment in the building where my son and daughter-in-law live.
>> Okay. Is this your son?
>> This is my son. Uh recently graduated from medical school. Um >> congratulations.
>> And my son and my daughter-in-law and my new grandson were >> Oh, you didn't tell me about the new grandson. Yes.
>> Of course you want to live there.
>> I wanted to live there. It was very important.
>> And hopefully they want you to live there, too, right?
>> Okay. This was uh quite an incredible coincidence because it was in the same building and it was advertised as a studio apartment and it turned out that it's actually not a separate apartment.
It's some kind of a part of an apartment, but I took it.
>> So, it was sort of being like a roommate with her.
>> I didn't understand that from the beginning.
>> What exactly is going on? Like what kind of what happened there construction wise or what's going on there?
>> Okay. I had a one-bedroom apartment and I bought the apartment next door. I have a 24 year old son and we needed more room. So I took the bedroom in the apartment. I broke through. I took the bedroom. I uh the condo does not allow us to sublet. So I didn't I wanted to rent out the studio part, but I couldn't if I sealed it. So I put two bookcases in front of the bedroom. I have a picture here.
>> Okay. So you have So what separates the part that you rent out are bookcases. So technically speaking, it's a roommate and not a sub. It's a roommate and that's acceptable by the um the condo.
>> All right. Oh, okay. That's helpful. Got it. Is there a separate entrance or no?
>> Yes. It's just she has a living room.
The >> Could you hear each other?
>> Pardon?
>> Can you hear each other? Like if if if she's in the studio and you can you like how how transparent?
>> I put a soundproof wall and I have the two bookcases. I've asked her if she's heard me if I've been noisy and she said no.
>> All right. So now you move in there and what happens?
>> Well, I signed the lease and I um actually suggested at least for one year uh from September 1st, I suggested that we put 60 days uh notice myself. I added 60 days notice >> as opposed to >> as opposed to well she she didn't specify.
>> Okay. and I handed in um actually um $1,450 security deposit plus I paid some $500 towards a broker fee but I am but 1450 was a security deposit.
>> Then what happens at some point you decide to move out or your lease is over or what's going on?
>> Well towards the end of the lease which was the end of towards the end of maybe in August I said that I might have to move because I might have an assignment abroad. I retired recently and then Diane told me, "No problem. You can give me two weeks, even one week notice because I'm not going to even advertise beforehand."
>> Okay.
>> But then I decided not to leave. So >> now at this point, you're not in a lease or you are in a lease.
>> The lease ended and uh then in January on January 12th, I was abroad. I wrote an email that I would like to leave at the end of January.
>> Okay. But I got a very explosive email back >> from her.
>> Yes. So I respond. It's like >> she was mad because she felt like you weren't giving her enough notice.
>> She asked she was sticking to 60 days that I myself put in in the original lease.
>> Okay. And you say that the two of you had agreed to just make it two weeks notice.
>> Well, now wait a second. I I didn't want to have any kind of fight on my hand. So I respond immediately in an email saying okay in that case I will pay you for February and I stay till the end of February. So that would be um >> that still wouldn't be 60 days.
>> No, it would be 60 days. But in addition, what I say that I will find a replacement. I will find a replacement and she agreed with with great pleasure through my son through Colombia Medical School. I found a replacement so that you have complete continuation.
>> Do you have the emails where she says that's great?
>> Well, whether she says that great uh to to that I'm not sure, but I want I found a place.
>> All right. So, wait, hold on one second.
She You got noticed. Hold that one second. She She gets She gives you notice like sometime in According to you, it's January 20th, correct?
>> Okay. I I think we I would like to go back to uh when we talked in October.
Under no circumstances did I ever tell her that two weeks would be acceptable.
>> Okay. So, it's now it's January 12th or 20th.
>> January 12th. She sent me an email stating she was leaving. I was saying I wrote back to her saying that I thought we had a binding contract that first of all, she needed to give me 60 days.
You do not have a binding contract anymore because now it's month to month.
>> Well, I wasn't aware of that. I wasn't aware that it wasn't binding. I wasn't aware of that.
>> Not that it's not binding. It's that it's over. Wasn't it over by then?
>> I didn't I thought it was continuing.
>> Okay. Can I see your lease?
>> Lease term. Type of term yearly with automatic renewal.
The lease starts September 1st of 2008.
I don't even know what that means.
yearly with automatic renewal. So unless somebody tells you we're not renewing, >> then it would be renewed.
>> Well, what ends up happening, by the way, she leaves at the end of January.
And is the place re-rened?
>> Okay. But uh >> yes or no?
>> Yes, the place was rehabed.
>> Okay. Was it rerented to somebody who she found? The doctor that she found?
>> It Yes.
>> So there was no gap in your rent. It's not as though someone didn't pay rent and you're out damages because of that.
So then when you say to when you I see an email where you say to her you've broken the lease and because of this this and this I'm going to keep the deposit. Now I want to talk to you about this this and this. Number one, she didn't give you notice. Assuming that you are right, okay, that she that this contract was yearly automatic renewing.
Let's assume that you are right. Okay, you're only entitled to keep the security deposit to cover your damage as a result of the breach. There's two parts to any lawsuit. One is you did me wrong and the other one is and I'm damaged because of it. So I get to keep the amount of damage I have. You have no damage. So in other words, her f assuming she had a lack of notice, there's no damage to you because you found a tenant right away. And in fact, you didn't even find a tenant. She found a tenant. So you can't keep it for lack of notice. What's the next reason that you say you're going to keep it because the place was a mess?
>> Well, the place was not clean, but that wasn't it wasn't that big a deal because I went in and cleaned it myself.
>> Okay.
>> Uh I do have some expenses. They had to uh it's like amounts to $65.
>> Show me that. Show me the receipt for that. Now that's that's in order to to plug some holes in the wall. Correct.
>> Right. And the queen and they had to the bathroom was uh plugged up.
>> Okay. Let me see that.
>> I have pictures.
>> Does that also include the change of locks?
>> And change the lock too.
>> Okay. Now, why would they have to pay for the change of locks?
>> Because he still was in the building. He had the keys. I had somebody moving in and I didn't fair. I don't think any tenant should be subject to somebody else having the keys and be able to I agree. But well, why would that not be a cost you have to like I wouldn't feel safe either.
>> They were harassing me. They were calling me. I was ready to call the police. They had to file an incident report because at 11:30 he started screaming at the security because he said that I had locked him out. Okay.
Cuz I had changed.
>> You come on up. At 11:30 on January 31st, which is her last day of being able that she had paid for rent, you go to the apartment. Why? Why? So late.
>> Can a landlord charge a tenant and dock the security deposit for changing the locks once the tenant moves out?
>> Um, I think so.
>> Because >> Sorry.
>> Okay. Well, you think so and you're not sure why you think so? Who knows? So, >> I mean, I think only if you agreed prior to moving in that that was part of his policy.
>> But the landlord might say, "Hey, you know what? I don't know whether this guy made keys." And you know, if he made keys, what about the next tenant? I think it's a good idea because then the all the tenants will have safety and security.
>> So, but does the prior tenant get docked for it?
>> What do you think? I don't >> I think if it was when the is it a part of the deposit, then they don't have to pay.
>> Okay. Going inside the courtroom, >> the incident report and the time that I made the incident report was 5 p.m.
>> 5 p.m. Can I see it?
>> Yeah.
>> Yeah.
>> Thank you, sir.
>> Okay. It's this is like crossed out and then it said something is crossed out and then somebody wrote five.
>> If I may if I may explain uh the day of the week the day of the 31st I went with my wife earlier in the day to clean out some of the the remaining belongings. We noted that there were still some holes in the walls and other things needed to be taken care of. We went out to get the appropriate supplies to do that. We came back in order to try to reenter the apartment with the key. We were unable to enter the apartment because clearly the lock had been changed.
>> Did you change your lock on the 31st? I changed the lock after I received her official notice by email, which I have a copy of, stating that the apartment has been vacated and it's broom clean.
>> Okay.
>> And a couple hours later, I had somebody come in.
>> Why were you trying to get in after she Why did you send the email so fast? Why didn't you >> I said the apartment will be will be clear by the end of the day, sir.
Ferris.
>> Okay. Show me where she says I have left and it is broom clean.
The apartment has been vacated. You sent this on January 31st at just so you know. Okay. At 11:15 in the morning, you sent an email saying, "The apartment has been vacated. It is broom cleaned as required as of today. We would like to return the keys and receive the security deposit as per earlier email this month.
Please contact us." That's sort I mean, look, you still have paid the rent and you still shouldn't change your locks on the day that they've still paid rent.
But let me just suggest to you that you should wait until the first to ever send an email like that so that we don't have this problem. You say it's now 5:00 in the afternoon. You're trying to gain entrance in order to do what again?
>> Just to finish the cleaning.
>> Finish the cleaning up.
>> The refrigerator was still a little bit dirty.
>> And she did send it at 11:15.
>> But you have yet to give me one legitimate reason to keep the security deposit. You're entitled to keep from what you've shown me $45 in order to to end up plugging the holes and snake the drain. Those two things. It's not clean the place. It's pin holes and snake the drain. Okay? Because what I'm looking at here is not excessive. Particularly if you lock them out on a day that they paid rent. I'm not going to order that.
So, you can keep $45 of the security deposit and the rest of it you're going to pay back. You don't get to just keep it in a gotcha kind of way because you find there to be technical violations which you can't prove. That's not how it works.
>> I misunderstood the definition of a contract.
>> No, the definition of a contract is to protect you from damage. That's the definition of a contract. Okay. No matter what, there are always two parts to a lawsuit. One is you did they did me wrong and two is it hurt and here's how it hurt and here's why. Here's the amount I want as a result of it.
>> But why would I put >> When we're done, you have to pay it back. $1,45 verdict to the plan.
>> Thank you.
>> Well, the defendant's out here first.
What do you think of that verdict?
>> I got rid of this. Oh, I have to be nice, don't I?
>> Easy. Well, you don't have to be, but >> Well, listen. The condo's going to be after them. They're gonna probably get kicked out. So that would be my satisfaction because they're they're con artists.
>> Con artist is a person that you spent time with, drank wine with or whatever.
Drank wine >> once I did when she tried to con me into lies. But anyway, that's it.
>> All right. You're dying to leave. So, okay.
>> Okay. All right. So, come on here. Step in here. Um, what's your feeling on the outcome this case here? Turn around.
>> Well, I think that was a completely correct outcome.
>> Yeah. What What does she have against you? Do you think she's >> No, I think that it's just um somebody who is very moody and feels a victim >> in general.
>> Now, you didn't realize that about her when you first met her or when?
>> Yes, but as I explained, I was very, very interested in being close to my family in this building.
>> You consider it a mistake now?
>> No, not at all.
>> Over to Harvey.
>> It's the landlord who has the burden of proving why she deducted money from the security deposit. She's wrong. Guess is wrong. She's going to be subject to penalties. And that will do it for this case litigance for the next case on the way into the courtroom right now.
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