12.6 Miscellaneous Issues

12.6 Miscellaneous Issues aetrahan Thu, 05/04/2023 - 13:36

12.6.1 Venue

12.6.1 Venue aetrahan Thu, 05/04/2023 - 13:36

A security deposit lawsuit may be filed in the parish in which the landlord is domiciled or in the parish where the property is situated.1

  • 1La. R.S. 9:3252(B).

12.6.2 Prescription

12.6.2 Prescription aetrahan Thu, 05/04/2023 - 13:36

Security deposit claims are not governed by any specific prescription statute. Presumably, they are only limited by the 10-year prescriptive period established for claims based on contracts or personal actions.1

  • 1See La. C.C. art. 3499.

12.6.3 Burden of Proof

12.6.3 Burden of Proof aetrahan Thu, 05/04/2023 - 13:37

A security deposit is the tenant’s property.1  Therefore, the burden of proof is on the landlord to show cause for the retention of the tenant’s deposit (property). In reality, however, a tenant’s success in recovering a security deposit depends heavily on the tenant’s ability to dispute the landlord’s retention with reliable evidence.

  • 1In re Universal Sec. & Protection Serv., Inc., 223 B.R. 88, 93 (E.D. La. 1998); cf. La. C.C. art. 2926.

12.6.4 Landlords in Bankruptcy

12.6.4 Landlords in Bankruptcy aetrahan Thu, 05/04/2023 - 14:04

In a Chapter 13 bankruptcy, the tenant’s security deposit claim should be a priority claim.1  Generally, all priority claims must be paid in a Chapter 13 bankruptcy. A tenant should consider filing an objection to a Chapter 13 plan if it proposes to pay less than 100% of the claim for the deposit.

In a Chapter 7 bankruptcy, the tenant should argue that the security deposit is not part of the landlord’s bankruptcy estate and that the deposit belongs to the tenant.2  If the security deposit no longer exists, the tenant should file a proof of claim. This may be filed without the payment of any court costs. Although a Chapter 7 bankruptcy will discharge the debt, it is possible that a tenant’s judgment lien, if any, will survive the bankruptcy.

  • 1Guarracino v. Hoffman, 246 B.R. 130 (D. Mass. 2000).
  • 2In re Universal Sec. & Protection Serv., Inc., 223 B.R. 88, 93 (Bankr. E.D. La. 1998).