Landlord Wrongfully Withheld Tenant’s Security Deposit

What Happened: For five years, a tenant leased space in Houston for use as a bar. After the lease ended, the tenant asked the landlord to return its $11,400 security deposit. When the landlord didn’t respond, it filed a lawsuit. The landlord countersued, claiming that the tenant did roughly $100K worth of damage to the premises. The trial court sided with the tenant, and the landlord appealed.

Decision: The Texas appeals court upheld the lower court’s ruling.

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