Edwina Jones v. Cost Management, Inc.
88 A.3d 147
Me.2014Background
- Tenant Edwina Jones rented a South Portland residence; security deposit ultimately totaled $1,500. Landlord Cost Management acquired the property and the deposit in July 2009.
- Lease required ~270 gallons of oil remain in tank at tenancy end; failure to do so permitted landlord to deduct cost of replacement from deposit.
- Tenancy ended Feb 28, 2010. Landlord found tank ~1/4 full and later determined $448 was needed to fill it.
- Landlord did not provide an itemized written statement or return the full deposit within 30 days. Jones demanded return (May and August 2010); landlord mailed checks (one for $1,052 in May and another for ~$1,085 in Aug) and Jones did not immediately cash the later check.
- Jones sued in Jan 2011 seeking $1,500 plus double damages, attorney fees, interest and costs under Maine’s wrongful-retention statute. District Court awarded Jones $1,500, awarded landlord $448 on its counterclaim (offsetting to $1,052 to Jones), and denied double damages, fees, and costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether landlord forfeited right to retain any portion of deposit for failing to provide written statement/return within 30 days | Jones: Statute mandates forfeiture; entitled to full $1,500 | Cost Mgt: Had reason to withhold for oil replacement; communications showed effort to return | Court: Landlord forfeited right under §6033(3); Jones entitled to $1,500, but offset allowed for landlord counterclaim ($448) resulting in net $1,052 to Jones |
| Whether landlord’s failure to return entire deposit within 7 days after notice gives presumption of wrongful retention under §6034(1) | Jones: August 19 notice triggered 7-day window; failure to return meant presumption of wrongful withholding and entitlement to double damages and fees | Cost Mgt: Previously mailed check (May 11) and timely communications show good-faith belief deposit had been returned; presumption rebutted | Court: August notice did trigger presumption, but landlord overcame it by showing it had mailed a check earlier and acted in good faith; no double damages, fees, or costs awarded |
| Whether landlord could pursue counterclaim for oil replacement despite statutory penalty | Jones: Penalty should bar offset | Cost Mgt: Landlord may bring simultaneous action to enforce other lease terms | Court: Landlord may pursue counterclaim; previous precedent allows offset; $448 awarded to landlord |
| Whether attorney fees are available where landlord failed only to give required 30-day notice | Jones: Fees recoverable under §6034(2) if withholding deemed wrongful | Cost Mgt: No wrongful intent; communications and partial payments rebut award of fees | Court: Under totality of circumstances, no award of attorney fees because landlord overcame presumption of wrongful withholding |
Key Cases Cited
- Lyle v. Mangar, 36 A.3d 867 (Me. 2011) (presumption of wrongful withholding and landlord’s burden to rebut)
- Markley v. Semle, 713 A.2d 945 (Me. 1998) (appellate assumption that trial court made necessary factual findings when no Rule 52 motion)
- Mariello v. Giguere, 667 A.2d 588 (Me. 1995) (same principle regarding findings of fact)