Fleming v. Hathaway

686 P.2d 837, 107 Idaho 157, 1984 Ida. App. LEXIS 487
CourtIdaho Court of Appeals
DecidedJuly 2, 1984
DocketNo. 14577
StatusPublished
Cited by4 cases

This text of 686 P.2d 837 (Fleming v. Hathaway) is published on Counsel Stack Legal Research, covering Idaho Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fleming v. Hathaway, 686 P.2d 837, 107 Idaho 157, 1984 Ida. App. LEXIS 487 (Idaho Ct. App. 1984).

Opinion

WALTERS, Chief Judge.

In this appeal we are asked to construe a section of the Idaho Code which governs the disposition of a security deposit paid by a tenant to a landlord. The tenant, Carolyn Fleming, paid a $100 security deposit to the landlords, Thomas and Rayma Hathaway, as provided in the Hathaways’ standard form lease agreement. Later, Mrs. Fleming terminated her tenancy and requested return of the deposit. When the deposit was not returned she brought this action. In the magistrate division of the district court, the trial judge held the Hathaways were entitled to retain the deposit, as liquidated damages, under the parties’ lease agreement. Accordingly, judgment was entered against Mrs. Fleming on her complaint. Mrs. Fleming appealed to the district court where the decision of the magistrate was affirmed. She then brought this appeal. We also affirm.

We are confronted with several issues in this appeal. First, did the Hathaways violate I.C. § 6-321 by retaining Mrs. Fleming’s security deposit after the termination of her tenancy? 1 Second, what remedies [159]*159are available against a landlord who violates I.C. § 6-321? Third, may a landlord assert a counterclaim for damages in an action by the tenant to recover a security deposit from the landlord? Fourth, was the forfeiture of the deposit in this case enforceable?

The provisions of the lease agreement between the parties, relating to the rental rate, the term of the lease and the security deposit, are as follows:

1) Rent: In return for the rental of 217 A South Garden Court, the tenant will pay $215 per month. The rent is due and payable to the account of the landlord at the bank designated at time of rental. Rent is paid in advance on the first day of every month. In the event rent is not paid by the fourth (4th) of each month, a late charge of $3.00 per day from the due date (1st of month) is automatically due. [Blanks completed in original.]
4) Deposit: The tenant shall give the landlord a total of $100.00 as deposit. The deposit is to cover breakage and damage to the property, furniture, and fixtures within it, except for ordinary wear and tear within it and depreciation; any cleanup necessary to return the property to the condition the tenant found it; to cover overstay, keys, unpaid utility bills, etc. Also, tenancy of less than _6_ months. An attached schedule delineates specific cleanup charges. [Blanks completed in original.]

Less than one month after the parties had entered into the agreement and Mrs. Fleming had taken possession of the property, she informed the Hathaways of her intent to terminate the tenancy. In response, Mr. Hathaway told Mrs. Fleming that the lease was for a six-month period; that her early termination of the tenancy was a breach of the lease; and that the $100 deposit would be forfeited as a result of that breach. After Mrs. Fleming vacated the premises, she requested, by letter, that the Hathaways return her security deposit. The Hathaways never complied with this request.

Mrs. Fleming brought suit to obtain the security deposit under I.C. § 6-320. That section states: “A tenant may file an action against a landlord for damages and specific performance for ... [failure to return a security deposit as and when required by law____” Mrs. Fleming asserted that the lease was for a month-to-month tenancy and that she was entitled to a return of the full amount of her security deposit, following termination of the tenancy, because the Hathaways had failed to inform her in writing why they were retaining the deposit. The Hathaways, however, took the position that the lease was for a six-month period and that, because the lease allowed for forfeiture of the deposit if the lease was terminated early by the tenant, the written lease itself sufficed as notice to Mrs. Fleming as to why the Hathaways were retaining the deposit.

Following trial to the court, the magistrate entered findings of fact and conclusions of law and a judgment for the Hathaways. In its conclusions of law the court stated: “The written lease, together with Defendants’ oral statement of forfeiture because of breach of lease, is a compliance with the written statement required by Idaho Code, Section 6-321.” The court also held that the Hathaways were entitled to keep the deposit as “liquidated damages.”

We address first the question of compliance with I.C. § 6-321. This statute plainly requires that, in the event less than the full amount of a deposit is returned, the landlord must provide the tenant with a “signed statement” itemizing the expend[160]*160itures made by the landlord and the purpose of those expenditures. Here the landlord failed to comply with the statute. A security deposit was provided by Mrs. Fleming when the lease agreement was entered into. The deposit fits the I.C. § 6-321 definition of security deposit, as it was “other than [a] payment of rent.” This amount was not refunded to Mrs. Fleming within twenty-one days of the termination of her tenancy. Mrs. Fleming never received a signed statement accounting for the retained deposit. The lease agreement, by itself, does not suffice. We hold the magistrate erred in his conclusion that providing oral notice of a forfeiture and a signed copy of the lease constituted compliance with I.C. § 6-321.

We turn next to the consequences resulting from the landlords’ violation of I.C. § 6-321. As noted, Mrs. Fleming brought her suit under I.C. § 6-320. She sought specific performance for the refund of her deposit. Had she also claimed damages, then I.C. § 6-317 might have allowed recovery — in the discretion of the trial court — of a judgment equal to three times the amount of any actual damages assessed. Further, she would be entitled to recover her costs and disbursements if judgment were entered in her favor for either specific performance or for damages. 1.C. § 6-320(c). Finally, subject to the guidelines of I.R.C.P. 54(e), a prevailing tenant could also be awarded attorney fees for representation at trial. I.C. § 12-121.

The magistrate, however, held against Mrs. Fleming’s claim for refund. The court concluded that the Hathaways were entitled to keep the deposit as “liquidated damages” because Mrs. Fleming had “breached” the lease by terminating it before six months had expired. Therefore, in order to determine whether Mrs. Fleming is entitled to any relief from the Hathaways’ violation of I.C. § 6-321, we must next decide the propriety of the magistrate’s conclusion regarding “liquidated damages.”

The right of the Hathaways to retain the security deposit was raised through the pleadings and the testimony of the Hathaways at trial. They had asserted, as an affirmative defense in their answer to Mrs. Fleming’s complaint, that:

The provisions of IC 6-321 relating to security deposits are not applicable to this case, the defendants not having received any sums from the plaintiff as described in IC 6-321, and if the sum of $100.00 is determined by the trier of the fact herein to be in fact such a security deposit then the requirements of IC 6-321 are substantially complied with by the language of the written rental agreement signed by the plaintiff.

On inquiry by the trial judge, Mr. Hathaway explained that they had not “received any sums from [Mrs. Fleming] as described in I.C. § 6-321” because the $100 deposit was a sum to be forfeited in the event Mrs. Fleming terminated the tenancy before six months had expired.

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Bluebook (online)
686 P.2d 837, 107 Idaho 157, 1984 Ida. App. LEXIS 487, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fleming-v-hathaway-idahoctapp-1984.