Security Deposit Law

 DEPOSIT RETURN EXAMPLES  

     Tenant rented a house in Chicago and, after moving out, the landlord did not send back the deposit within 45 days after the tenant moved out.  The Tenant send the landlord some letters requesting it back.  The landlord kept $500 and never paid interest to the Tenant, according to the Tenant.

     At trial the landlord argued that, although they had never mentioned interest on the security deposit before, it was actually calculated by the landlord, and included in her computation that led her to keep the $500.  The trial court did not agree that the landlord had ever actually paid interest, and so awarded the tenant two times the security deposit plus costs and attorney fees.

     The landlord appealed.  The Court of Appeals did not feel landlord could show that the trial court was wrong.  Instead, that Court pointed to the landlord's own testimony at the trial, which contradicted her new explanation for the deposit interest. 

     The landlord's appeal did manage to shave $1,500 off the $10,000 total, because that Court did not agree with our characterization of the whole deposit as a "security deposit." 

     The order from the appellate court is unpublished pursuant to Illinois Supreme Court Rule 23, and so is not precedent.  But it is still interesting.

Trial court affirmed for finding landlord failed to pay security deposit interest

 

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