Failure to Return Security Deposit in New Jersey

Background

“Upon termination, the landlord is obligated by statute to return the security deposit or notify the tenant in writing, by registered or certified mail as to the reason for retaining it.” (See Veliz v. Meehan (1992) 258 N.J. Super. 1, 4.)

General Information for Complaints and Motions

“The landlord is obliged to return a security deposit within 30 days of the termination of a lease.” (See Veliz v. Meehan (1992) 258 N.J. Super. 1, 4.)

“If the landlord believes he or she is entitled to make deductions from the deposit, it is the landlord's obligation to notify the tenant in writing.” (See id.)

“In order to prove a cause of action for the return of a security deposit, the former tenant must show the existence and subsequent termination of a landlord-tenant relationship, the receipt of a security deposit by the landlord, and the failure of the landlord to return the deposit moneys.” (See id; Carter v. Sandberg (1983) 189 N.J. Super. 42 , 47, 458 A.2d 924.)

Standard of Review and Burdens of Proof

“We review a grant of summary judgment using the same standard that governs the trial judge's decision.” (See Kalim v. Urban Outfitters, Inc., No. A-4811-18, at *10 (App. Div. Mar. 4, 2021).)

“Under that standard, summary judgment will be granted when the competent evidential materials submitted by the parties, viewed in the light most favorable to the non-moving party, show that there are no genuine issues of material fact and that the moving party is entitled to summary judgment as a matter of law." (See id.)

"An issue of material fact is genuine only if, considering the burden of persuasion at trial, the evidence submitted by the parties on the motion, together with all legitimate inferences therefrom favoring the non-moving party, would require submission of the issue to the trier of fact.” (See id.)

“We owe no special deference to the motion judge's legal analysis.” (See id.)

The Court’s Decisions

It is well settled that “the Security Deposit Act, N.J.S.A. 46:8-19 to -26, provides in pertinent part that within thirty days after the termination of a tenant's lease, the owner or lessee of the premises shall return to the tenant the security deposit, plus any interest or earnings accumulated thereon, less any charges expended in accordance with a contract, lease, or agreement.” (See Krukowski v. Wong, No. A-5182-15T1, at *9 (App. Div. Sep. 28, 2017).)

It is also well settled that “if a landlord violates this requirement, the tenant may sue the landlord, and the court upon finding for the tenant . . . shall award recovery of double the amount of said moneys, together with full costs of any action and, in the court's discretion, reasonable attorney's fees." (See Siris Pharms., LLC v. Unity Bank, No. A-5487-14T2, at *5-6 (App. Div. Nov. 30, 2016).)