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.