Former Tenant Sues Owner for $24M Over Unpaid Security Deposit Interest

February 27, 2013
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A former tenant of a rent-stabilized apartment on the Upper East Side recently sued his ex-landlord for $24 million over the interest on the security deposit he paid more than 40 years ago. The resident claims that the owner refused to hand over the interest after he moved out of 1100 Madison Ave. and relocated to New Jersey in 2012 after suffering a stroke. His lawyer said the accrued interest on the 1975 security deposit exceeded $10,000.

The former resident's Manhattan federal court suit seeks damages for himself and potentially thousands of other ex-tenants at 1100 Madison and two other East Side buildings that the owner owns, on grounds including fraud and breach of fiduciary duty.

The owner's lawyer said the company has the canceled checks showing that the resident got interest payments on his security deposit, and noted that he was allowed to occupy his apartment, rent-free, for two weeks after breaking his lease. The owner's lawyer also added that the company mailed the tenant a check for about $1,000 for all the interest he could possibly claim he’s owed.