Legal Question in Real Estate Law in Colorado

Precedent for treble return of security deposit

It has been 45+ days since my lease ended and the landlord hasn't returned my deposit (the deadline was 30 days). I sent a seven-day demand letter, which was received eight days ago. The agent says that they will have my full deposit (without deductions) ready in only two or three more days.

If the landlord does return the deposit, but I decide to sue (since they didn't return the deposit within seven days of receipt of the letter) is there precedent for tenants in my position actually winning treble the deposit plus attorneys' fees, court costs, etc? I'd hate to waste the time of everyone involved only to find that courts don't really award more than the original deposit.

Also, the landlord had a clause in the lease stating that I can't sue them if they failed to fulfill the terms. Would a judge dismiss my case based on that? Or is it unenforcable?


Asked on 2/15/02, 7:34 pm

1 Answer from Attorneys
Roger Johnson Roger D. Johnson, P.C.

Re: Precedent for treble return of security deposit

You should check your lease to make sure the 30 day period was not extended by the terms of the lease.

I know of no reported cases involving a fact pattern where the security deposit was returned prior to suit, albeit after the 7 day period. To avoid this potentially awkward circumstance, I would advise you to file suit ASAP, hopefully before the deposit is returned.

It would not be unusual to see a no suit clause in a document that contained a mandatory arbitration clause. By itself and without the arbitration clause, I am inclined to think the no suit clause would be unenforceable. I am confident the no suit clause [whether coupled with an arbitration clause, or not] would not operate to bar your suit for treble damages based on the failure to timely return the security deposit.

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Answered on 2/16/02, 3:46 pm


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