In Tree City Properties, LLC v Perkey, a published Michigan Court of Appeals opinion, the landlord sent the tenant an itemized list of damages. The tenant disputed the damages. The landlord filed suit against the tenant. At trial, some of the landlord’s claims were denied, and the trial court granted the tenant a judgment for twice the amount of the security deposit withheld for the denied items. The landlord appealed.
Holding that the issue as one of first impression in Michigan, the Court of Appeals reversed the trial court, holding that a landlord who has complied with all of the requirements of the Landlord-Tenant Relationships Act cannot be held liable for twice the amount of the deposit withheld simply because the landlord loses on the claim.
The Landlord-Tenant Relationships Act provides that, if the tenant gives the landlord a forwarding address in writing within 4 days of vacating, the landlord must send the tenant an itemized list of damages within 30 days of vacating. Under MCL 554.613(1), if the tenant disputes any of the claimed damages, the landlord must file suit against the tenant within 45 days of vacating. MCL 554.613(2) provides that, if a landlord fails to comply with this section, the landlord “is liable to the tenant for double the amount of the security deposit retained.”
The court held that, if the landlord has complied with (1) by filing suit within the 45 days, the landlord is not liable for twice the amount of the security deposit simply because the landlord’s claim for damages was not sustained in the trial court.