Court Opinion

ID: 9704262
Source: CourtListenerOpinion
Date Created: 2023-08-26 00:28:51.600245+00
Date Added: 2024-06-11T18:21:59.232186
License: Public Domain

CRONE, Judge,
dissenting as to Issue 2.
I agree with the majority's conclusion that Village Green must return Lessees' security deposit because of Village Green's failure to comply with the notice provisions of Indiana Code Section 82-81-38-14. Based on my reading of Indiana Code Sections 32-81-3-12 through -15, however, I must respectfully disagree with the majority's conclusion that Village Green is also foreclosed from recovering unpaid rent from Lessees.
Indiana Code Section 32-31-8-12 states in pertinent part,
(a) Upon termination of a rental agreement, a landlord shall return to the tenant the security deposit minus any amount applied to:
(1) the payment of acerued rent;
(2) the amount of damages that the landlord has suffered or will reasonably suffer by reason of the tenant's noncompliance with law or the rental agreement; and
(3) unpaid utility or sewer charges that the tenant is obligated to pay under the rental agreement;
all as itemized by the landlord with the amount due in a written notice that is delivered to the tenant not more than forty-five (45) days after termination of the rental agreement and delivery of possession. The landlord is not liable under this chapter until the tenant supplies the landlord in writing with a mailing address to which to deliver the notice and amount prescribed by this subsection. Unless otherwise agreed, a tenant is not entitled to apply a security deposit to rent.
(b) If a landlord fails to comply with subsection (a), a tenant may recover all of the security deposit due the tenant and reasonable attorney's fees.
(c) This section does not preclude the landlord or tenant from recovering other damages to which either is entitled.
(Emphasis added.)
The majority's conclusion renders Indiana Code Section 32-381-3-12(c) meaningless and creates a manifestly unreasonable result. I do not believe that a landlord's failure to give a tenant proper notice of damages for which a security deposit may be used precludes the landlord from recovering unpaid rent in excess of the amount of the security deposit. See Schoknecht v. Hasemeier, 785 N.E.2d 299, 303 (Ind.Ct.App.2000) (noting that Ind. Code § 82-81-3-12 " 'applies only to security deposits' and that the statute 'clearly and unambiguously preserves the right of the landlord ... to recover other damages to which [he or she] is entitled. ") (quoting Miller v. Geels, 648 N.E.2d 922, 927 (Ind. *419Ct.App.1994), trans. denied (1995)) (alterations in Schoknecht ).
Accordingly, I dissent.