[WSBARP] security deposit as liquidated damage

[Roger Hawkes]

All: there is case law saying liquidated damage clause must be specifically negotiated and be a reasonable amount. Idk if ‘deposits’ are different.

Roger Hawkes, WSBA # 5173
Sky Valley Law
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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Kaitlyn Jackson
Sent: Thursday, September 23, 2021 12:50 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] security deposit as liquidated damage

I think you can simply have a lease break clause that indicates one of the reasons for keeping the deposit is for lease break.

On Thu, Sep 23, 2021 at 12:45 PM Teague Pasco <pasco at pasco-law.com<mailto:pasco at pasco-law.com>> wrote:
Hi, I've been volunteering with Tacoma Pro Bono doing eviction related clinics, so I happen to know the answer to this.   Deposits are refundable.  Non-refundable fees are possible but they have to be clearly identified in the lease. RCW 59.18.285

Teague Pasco
pasco at pasco-law.com<mailto:pasco at pasco-law.com>
Mobile:  360-643-3990<tel:360-643-3990>



On Thu, Sep 23, 2021 at 11:14 AM Joseph McIntosh <jmcintosh at mccarthyholthus.com<mailto:jmcintosh at mccarthyholthus.com>> wrote:
Question for the LL attorneys.  Can a residential lease include a term saying the damage deposit is forfeited if there is payment breach, even if the LL immediately re-rents and doesn’t actually suffer a loss?  Akin to a liquidated damage clause, I suppose.  The Act appears to be silent on this issue, but the damage deposit provisions contemplate covering actual damages.  Thanks.



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