Tenant wants to settle law suit

[sunnyday]

Need some advice. Tenant filed a law suit suing me for her security deposit. At the preliminary hearing the judge suggested that I counter sue tenant for unpaid rent and utility bills. The tenant hired a lawyer who wants to settle out of court. Tenant's attorney sent me the following letter. "To resolve the case, (tenant's name) agrees that you may retain her security deposit of $3500, and will pay you an additional $500 for the other debt/expenses you listed in your letter to (her first attorney) in exchange for your Release (attached, to be printed, signed and notarized by you).

We will meet tomorrow and exchange your original signed Release and my trust check for $500. At that point, we will consider the matter resolved and no further action to be taken.

Settlement does not constitute an admission of liability, but rather represents a decision made in light of the time-consuming and expensive nature of litigation.

This email is a privileged settlement communication and cannot be disclosed to the Court.


Should there be anything in writing as to why the tenant is dropping her law suit against me. I will have nothing other than the attorney's check. Why do I have to sign a release to the tenant she sued me and wants to drop the case against me. Could I not draw up a release form for the tenant releasing me from any further law suit regarding her security deposit? If someone drops a law suit can they refile at a later date? Thank you.

See your other post for my reply.

One other thing, the tenant doesn't want you to countersue because it would affect her credit. Once you won in court, you would be granted a judgment against her for the amount owed. That would be picked up as a bad debt by the credit agencies and lower her credit score.

I would also carefully check the unit for hidden damages - check outlets to be sure they work, all plumbing for free drains, etc.