70-25-204. Wrongful withholding of security deposit — action. (1) A person who wrongfully withholds a residential property security deposit or any portion of the deposit is liable in damages to the tenant in a civil action for an amount equal to the sum determined to have been wrongfully withheld or deducted. The attorney fees may be awarded the prevailing party at the discretion of the court. The burden of proof of damages caused by the tenant to the leasehold premises is on the landlord.

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Terms Used In Montana Code 70-25-204

  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Leasehold premises: means the premises occupied by the tenant together with all common areas, recreational facilities, parking areas, and storage facilities to which the tenant has access, as well as all personal property owned or controlled by the landlord the use of which is permitted to the tenant. See Montana Code 70-25-101
  • Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
  • Property: means real and personal property. See Montana Code 1-1-205
  • Security deposit: means value given, in money or its equivalent, to secure the payment of rent by the tenant under a leasehold agreement or to secure payment for damage to and cleaning of the leasehold premises. See Montana Code 70-25-101

(2)An action may not be maintained by a tenant for any amount wrongfully withheld or deducted prior to:

(a)the tenant’s receipt from the landlord or the landlord’s agent of a written denial of the sum alleged to be wrongfully detained;

(b)the expiration of a 30-day period after the termination of a tenancy;

(c)the expiration of a 30-day period after surrender and acceptance of the leasehold premises; or

(d)the expiration of a 10-day period after the landlord has indicated there were no damages to the premises, no cleaning was required, no rent was unpaid, and no utilities were unpaid by the tenant.