New York Court of Appeals

Eugene J. Chaude, Respondent v. Charles D. Shepard, Appellant

October 28, 1890122 N.Y. 397

Summary

The Court held that the lease deposit was security for the tenant's performance, not liquidated damages or a penalty, and that the landlord may retain only the amount necessary to cover damages from the tenant's breach, with any surplus to be returned to the tenant. The judgment of the lower court was affirmed.