Legal Question in Landlord & Tenant Law in Minnesota

Yes. The damage deposit is just a security for the landlord that if there are damages, they already have money in-hand (in case the tenant skips out leaving damages to the apartment). Unless there is a clause in the lease specifically limiting damages (unlikely), a tenant will be in the hook for whatever damage the landlord can prove the tenant caused to the apartment above the normal wear-and-tear. If you are being sued by your landlord for a substantial amount, you should contact an attorney to help you defend this suit.