California Civil Code Section 1950.5 requires a landlord to provide, within 21 calendar days, an itemized statement indicating the basis for, and the amount of, any security deposit received; and the disposition of the security deposit and to then return any remaining portion of the security deposit to the tenant.
Specifically, Section 1950.5(g) provides that the landlord: shall also include copies of documents showing charges incurred and deducted by the landlord to repair or clean the premises, as follows: (A) If the landlord or landlord’s employee did the work, the itemized statement shall reasonably describe the work performed. The itemized statement shall include the time spent and the reasonable hourly rate charged. (B) If the landlord or landlord’s employee did not do the work, the landlord shall provide the tenant a copy of the bill, invoice, or receipt supplied by the person or entity performing the work. The itemized statement shall provide the tenant with the name, address, and telephone number of the person or entity, if the bill, invoice, or receipt does not include that information. (C) If a deduction is made for materials or supplies, the landlord shall provide a copy of the bill, invoice, or receipt. If a particular material or supply item is purchased by the landlord on an ongoing basis, the landlord may document the cost of the item by providing a copy of a bill, invoice, receipt, vendor price list, or other vendor document that reasonably documents the cost of the item used in the repair or cleaning of the unit.
If a landlord does not comply with the statute, then a tenant can be successful on a Breach of Statutory Duty claim against the landlord and be entitled to recover the entire deposit. A Tenant would have to show that the Landlord failed to provided Tenant (within 21 calendar days) with an itemized statement concerning the Tenant’s security deposit. Once Tenant has met his/her burden of proof and establishes that Landlord breached the Statutory Duty imposed by Section 1950.5(g), then Tenant is entitled to a refund of the entire deposit. See Granberry v. Islay Investments, (1995) 9 Cal.4th 738 (California Supreme Court held that when a landlord fails to comply with Section 1950.5, then the entire security deposit must be returned to the tenant.) Id. at 745.
We recently secured a judgment for a Los Angeles tenant for his entire security deposit ($8,000.00) plust costs, fees and interest by proving on a summary judgment motion, that landlord simply failed to provide tenant with a itemized statement concerning his security deposit. The Los Angeles Superior Court held that, as a matter of law, tenant was entitled to the entire deposit. No trial on the merits were required.