Colorado - Security Deposit Law

Hey all,
I have a question regarding tenant law. I've read Colorado statutes regarding security deposit.

1. Property located in Adams County Colorado,
2. Property management company is located in New Mexico

I filed a small claims court date request with the courts and they returned it stating I can't sue a company that isn't located in Adams County through their courts. If the property is located in this county, where do I file? Doesn't make sense to sue them in NM when tenant law would apply to Colorado, not NM.

I believe you did something wrong. According to the small claims manual, you should be allowed to sue them in the county where the property is located.

Zigner said:

I believe you did something wrong. According to the small claims manual, you should be allowed to sue them in the county where the property is located.

https://www.courts.state.co.us/userfiles/file/Self_Help/smallclaimshandbook%20finaltocourt%204-11.pdf

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Thanks for your response. I think the clerk saw their address in NM and may have been misinformed. I plan on calling tomorrow, just wanted to make sure I wasn't wrong in filing.

doubleup29 said:

I filed a small claims court date request with the courts and they returned it stating I can't sue a company that isn't located in Adams County through their courts.

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Your remedy does exist using a higher level Colorado court.

I suspect that'll be a district court in the county where the property in question rests.

"All actions in the small claims court shall be brought in the county in which at the time of filing of the claim any of the defendants resides, or is regularly employed, or has an office for the transaction of business, or is a student at an institution of higher education. In an action to enforce restrictive covenants or arising from a security deposit dispute, the action may be brought in the county in which the subject real property is located."


I suggest you print a copy of this and take it to the court clerk's office and ask that your papers be filed.

Is Small Claims Court Right for You?

Can you get what you want?

The Small Claims Court is a "court of limited jurisdiction." This means that the court cannot award more than $7,500, even if your claim is worth more. You will have to waive your right to the amount that exceeds
$7,500, or you will have to bring your claim in a different court. You may also be entitled to recover your filing
fee, service of process fee and interest.

In addition, the Small Claims Court can only handle certain kinds of claims. Basically, these are simple cases to recover money or property, perform a contract, set aside a contract, or comply with restrictive covenants.

For example, a dispute between a landlord and tenant over the return of a security deposit can properly be
brought in Small Claims Court. So can a case involving a car accident, where insurance did not cover the
damages to a car.

You cannot have a jury trial in Small Claims Court. Under Colorado Revised Statute (C.R.S.) § 13-6-405(4),
all claims are heard by a Magistrate, unless one of the parties timely requests that a Judge hear the case or
unless that particular court location does not have a Magistrate. The Small Claims Court cannot hear cases
of libel or slander, eviction, traffic violations, or criminal matters.

For a full list of prohibited claims, see C.R.S.
§ 13-6-403.

There are some things the Small Claims Magistrate (or Judge) cannot do, even if you win. The Magistrate
cannot order someone to stop calling you at 3 a.m. in the morning or saying bad things about you in public. If
you need help of this kind, then you should not be in Small Claims Court.

Who can you sue in Small Claims Court?
The party you are suing in Small Claims Court must meet one of the following qualifications to be sued in
the County in which the Small Claims Court is located: The Defendant must either: (1) live in the County; (2)
be a full- time student in the County; (3) be regularly employed in the County; (4) have a regular place of
business in the County; or (5) be the Landlord in a claim concerning a security deposit paid by the Plaintiff to
rent property located in the County. If the Defendant does not meet one of these qualifications, you cannot
use the Small Claims Court in that County, but a different court either in the same County or in a different County may have jurisdiction to hear your case.

Can you get organized? Can you think on your feet?
If you take your case to Small Claims Court, you have to be able to tell the Magistrate your story so that he
or she understands why you are entitled to prevail in your case.

You also have to be able to answer questions from the Magistrate or the other side. Before you go to Small Claims Court, you will need to gather evidence to present your claim, like a contract, pictures, or a set of bills.

Can you speak in public? If you go to Small Claims Court, you will have to make a public presentation with
people watching you.

Can you think and speak when you are feeling stressed? You will have to try and remain calm even with your opponent there, who you may think is lying about you and the situation.

If you cannot do this, you should not be in Small Claims Court.

https://www.coloradojudicial.gov/sites/default/files/2023-07/JDF248.pdf

https://www.courts.state.co.us/userfiles/file/Self_Help/smallclaimshandbook finaltocourt 4-11.pdf

doubleup29 said:

Thanks for your response. I think the clerk saw their address in NM and may have been misinformed. I plan on calling tomorrow, just wanted to make sure I wasn't wrong in filing.

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Never rely on phone calls to bureaucrats.

Go to the court and make sure your case gets filed and date stamped so you can get it served.

By the way, have you included the property owner as a defendant?

The property management company is only the agent for the owner. The owner bears the ultimate responsibility for alleged wrong.

Update: The property management company came back and sent a document stating they were willing to pay the full deposit of I was willing to sign a form stating I couldn't sue them in the future and that this issue would be considered closed, without their admission to guilt.

I've already received a court date and am in the process of serving them. My move out was the end of July and they provided a breakdown of costs within the 30 day limit.

I don't feel good about signing the document and feel I should still take them to court for 3x the amount. It's not greed, it's principle. I'm aware the judge could rule in their favor and I could receive nothing, although highly unlikely.

My question/curiosity is that I can still take them to court since they've exhausted the allowable timeframe, yes?

I'm aware how it looks, just a question.

How much was your total deposit?
How much did they withhold?
What reason(s) did they provide for withholding that amount?
Why do you feel it was wrongful?

Zigner said:

How much was your total deposit?
How much did they withhold?
What reason(s) did they provide for withholding that amount?
Why do you feel it was wrongful?

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1. Total deposit $2500
2. They withheld $2250
3. They charged deep cleaning fees, shampoo fees, repair fees - all were bogus and provided the CO Statue regarding wear and tear, plus photos of said damages before we moved in. Nothing outside of normal wear and tear was made, nor any damages. Their "deep cleaning" was about double the charge in the Denver area.
4. It was wrong becausev what I mentioned above. Seems almost to the point of defrauding - they had access to the same images I sent them from before I moved in - they took them and they are the current images on Zillow showing a bunch of the items they tried charging for.

Additionally, nothing in the lease mentioned a requirement of shampooing carpets, deep cleaning.

They also mentioned they were dropping this property and have to settle this before they can transfer the property to the new management company.

doubleup29 said:

My question/curiosity is that I can still take them to court since they've exhausted the allowable timeframe, yes?

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I don't understand the question.

You wrote that you "received a court date and am in the process of serving them [sic]." So...you HAVE taken the property management company to court. Right?

It sounds to me like the only question is whether you should settle - whether on the terms offered or some other terms. You have the following options:

1. Accept the settlement offered for $X.
2. Reject the settlement offered and proceed with the lawsuit and try to recover $3X.
3. Reject the settlement offered but make a counter-offer.

If you go with option #2, then you're gambling that you'll be awarded an amount greater than $X. If you don't think that $X is enough but would be willing to settle for some amount between $X and $3X, then making a counter-offer would seemingly be the sensible thing to do.

Remind them that you can potentially win 3x and off to settle for 2x.

Cash in hand at signing of the form. Don't sign first and expect them to pay after. They are obviously crooks. LOL.

@zddoodah, what are your thoughts on the OP not suing the landlord, but only suing the management company? Is that the correct way to handle this (generally)?

Zigner said:

what are your thoughts on the OP not suing the landlord, but only suing the management company? Is that the correct way to handle this (generally)?

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I'll tell you my general thoughts, and I'm in Colorado. The management company is merely the agent for the landlord. The landlord is the one responsible for return the security deposit under the Colorado statutes. The management company may be the one obligated to return it under the contract. Either way, the landlord is responsible as the landlord is liable for the acts of its agents. The reverse is not true — the agent is generally not liable for the acts of the landlord. So if it is the landlord that is holding the deposit and decided not to return it only suing the agent may result in coming away empty. Thus, I'd sue both the landlord and the management company in most cases. That gives you two parties from which to get discovery, etc to support the lawsuit and gives you two parties from whom you may collect any judgement you win.

There are some situations in which just suing only one of them might be appropriate but before deciding to sue just one of them, the OP ought to talk to an attorney who represents tenants in landlord-tenant disputes.

There is also the problem that the management company is located in New Mexico which will make it more costly to collect from it if it doesn't have assets in Colorado.

Zigner said:

@zddoodah, what are your thoughts on the OP not suing the landlord, but only suing the management company? Is that the correct way to handle this (generally)?

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I commented on that in post 7

Thanks all!

When the courts initially kicked back my notice and claim, I added the landlord and the management company to the lawsuit and they accepted that. From the invoices, the management company is the one that charged the exuberant fees for cleaning and withheld the deposit. The individual at the property management company I'm in contact with communicates my counters with her "team"/managers.

If you added the landlord (owner) as a defendant you had to serve the summons and complaint on the landlord personally, separate from the management company.

Did you do that.

adjusterjack said:

If you added the landlord (owner) as a defendant you had to serve the summons and complaint on the landlord personally, separate from the management company.

Did you do that.

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I live out of state, so I'm still waiting for the courts to send me the summons. But yeah, I'll serve separately; the landlord is in CO and the management company in NM.

Went for a settlement of 2x and they declined so it's either accept the full deposit or go to court.