In this small claim action, the court held a trial on February 1, 2023. Claimant was defendant's tenant at 160 Central Park South where she owns a condominium unit. He brings this action for damages because he claims that defendant failed to return his security deposit after he moved out on March 26, 2021. There is a dispute as to the date he vacated because he did not remove his furniture until May 25.

At trial, claimant testified that he entered into a lease agreement with defendant from April 9, 2018 to April 8, 2019. He provided a security deposit in the sum of $10,000.00. Pursuant to the First Amendment to the lease agreement, claimant exercised his option and extended the lease until April 8, 2021. Upon vacating the premises on March 26, 2021, claimant was in negotiations with defendant and her real estate broker, Etienne Lyfaye, for the sale of his furniture to defendant. They requested that he leave his furniture in the unit to allow defendant to take pictures of a furnished unit to help facilitate the rental to a new prospective tenant. As a result, when the lease terminated on April 8, the furniture remained in the premises while the parties continued negotiating a sales price on What's App, a communication platform. In the meantime, the broker began marketing the rental which included pictures of claimant's furniture inside of the unit. However, the posting was removed at claimant's request.

On April 25, via What's App, claimant and defendant discussed sale of the television, lamps, tables, sofa and other furniture. The parties came to an agreed upon price for the sale of the furniture for $5,000.00. The owner agreed to pay $2,500.00. The broker agreed to pay the remaining balance of $2,500.00 because he wanted to market the unit with photos of the furniture. The next day, claimant noticed that photos of the unit with his furniture were being marketed again by a different broker despite the fact, that he had not received payment for the furniture yet. On May 20, he learned that defendant was not going to pay him the agreed upon price for the furniture. He then removed it from the premises on May 25. Despite not purchasing the furniture, claimant asserts that he has not received an itemized statement nor his security [*2]deposit. Claimant provided the Lease, the First Amendment to the lease agreement and emails, marked as Exhibit 1.

Mr. Brett Gossett, Esq. from the law firm of Romer Debbas, LLP represented defendant. Mr. Gossett stated that there is a dispute as to when claimant vacated the premises because he did not remove his furniture until May 25. As a result, he owed rent arrears for April and May in the sum of $7,000.00. He caused $2,500.00 in damages to the unit. Mr. Gossett also stated that claimant was negotiating with the broker for the sale of furniture, and defendant was not aware of any such negotiations. Moreover, defendant sent claimant emails dated June 5 and 11 outlining his failure to timely vacate, property damage and the security deposit. Defendant provided emails and a June 8, 2021 invoice, marked as Exhibit A.

Wide latitude is given to all litigants before the Small Claims Court and small claims' cases are informal and simplified procedures in which the court seeks to do substantial justice between the parties according to the rules of substantive law. See NYCCCA § 1804. As it relates to deposits made by tenants of non-rent stabilized dwelling units pursuant to General Obligations Law § 7-108(e) states:

Within fourteen days after the tenant has vacated the premises, the landlord shall provide the tenant with an itemized statement indicating the basis for the amount of the deposit retained, if any, and shall return any remaining portion of the deposit to the tenant. If a landlord fails to provide the tenant with the statement and deposit within fourteen days, the landlord shall forfeit any right to retain any portion of the deposit.

NY General Obligations Law §7-108(e) (emphasis added). Here, there is no dispute that Defendant did not give Claimant an itemized statement and the deposit or any remaining deposit within fourteen days. Under New York law, Defendant forfeits any right to retain any portion of the security deposit.

Claimant came forward with sufficient evidence that he vacated the premises on March 26 as evidenced in his emails. Defendant was aware that the furniture remained in the unit according to the What's App messages dated April 25 which is 17 days after the lease termination date of April 8. The messages were between claimant and Lina Zymnis, the owner of Arcadian Corporation N.V. - defendant, discussing the sale of furniture and the agreed upon price. There was no need for claimant to remove his furniture because defendant led him to believe she was going to purchase it. It was not until May 20, after defendant used the furniture for her marketing purposes, that claimant became aware that defendant was not going to give him the money. At which point, he removed the furniture on May 25. Furthermore, defendant's June 8 electrician invoice was for the installation of defendant's light fixture, and not the removal of claimant's fixture.

Assuming Arguendo, that claimant vacated the premises on May 25, defendant has still not complied with General Obligations Law § 7-108(e). If the Court considered defendant's June 5 email as an itemized statement, it only has a list of repairs, it does not itemize other expenses incurred and it does not state the basis for retaining the deposit. Defendant's June 11 email is past the fourteen-day requirement.

For the foregoing reasons, this Court finds in favor of Claimant.

Accordingly, it is hereby ORDERED that Claimant is awarded $10,000.00 with interest from April 8, 2021, cost and disbursements.

This constitutes the decision, verdict, and order of the Court.