CaseCited

Patel v. City of Fort Worth

576 S.W.3d 435 (Tex. App. 2019)

Good LawTexas Court of Appeals, 2nd DistrictFebruary 14, 2019Cited 89 times

Summary

The court addressed a landlord's obligation to return a security deposit under Texas Property Code § 92.103. The court held that a landlord who fails to return a security deposit or provide an itemized accounting within 30 days of the tenant vacating is presumed to have acted in bad faith. This presumption shifts the burden to the landlord to show good cause for retention.

The court clarified that the 30-day deadline is strictly enforced and that a landlord's failure to comply — even by a single day — triggers the bad faith presumption and potential liability for three times the deposit amount plus attorney's fees.

Key Holdings

  • 1Failure to return security deposit or provide itemized accounting within 30 days creates a presumption of bad faith
  • 2The 30-day deadline under § 92.103 is strictly enforced with no grace period
  • 3Bad faith presumption entitles tenant to statutory damages of three times the deposit plus $100 plus attorney's fees

Why This Case Matters

Establishes strict enforcement of the 30-day security deposit return deadline and clarifies the statutory damages available to tenants when landlords fail to comply.

Facts

Tenant vacated rental property and provided forwarding address. Landlord retained security deposit without providing itemized list of deductions within 30 days. Tenant sued for statutory damages. Landlord argued deductions were legitimate but admitted to late notification.

Legal Principles

Security deposit return deadlineBad faith presumptionStatutory treble damages

Statutes Interpreted

  • Tex. Prop. Code § 92.103
  • Tex. Prop. Code § 92.109

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