However, The Cap Did Apply To Fees; So, If The Costs Were Under $1,000, Lower Court Can Reconsider If Any Fees Are Appropriate Up To The $1,000 Ceiling.
In Aviles v. Shenon, Case Nos. B342634 et al. (2d Dist., Div. 1 Nov. 2, 2026) (partially published; costs and fee discussion published), a tenant won a security deposit dispute against landlord, a merits determination affirmed on appeal. However, the lower court determined that tenant’s routine costs could not exceed $1,000 based on a contractual cap for costs/fees of $1,000. The lower court denied fees altogether.
Tenant’s appeal of the costs and fees orders was partially successful. The appellate court decided that the issue of cost recovery was procedural such that the limitations on costs was void under Civil Code section 1953. As to fee recovery, that right was limited by contract and the Civil Code section 1950.5 security deposit statute contains no right to fees, such that the denial of fees was proper. However, if the costs award was under $1,000, the lower court could reconsider whether fees were appropriate up to the $1,000 limit.
