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Michael Clarkson
Conejos Capital
PO Box 837
Erie, CO 80516
Office Phone: 303.332.6393
Fax: 866.723.4337

Conejos Capital, LLC - 

Committed to Your Needs, Conscientious to Detail

Security Deposit Act Trial

On November 20, 2006, a decision was handed down by Judge Charles Unfug in Weld County Court which has severely negative ramifications for all Landlords in Colorado: ExecNet Properties, Inc. v. Conejos Capital, LLC.

Case Summary 

The case involves a rented executive home in Highlands Ranch, Colorado, that Conejos contends was damaged during the possession of ExecNet Properties, Inc. 

Upon the termination of the lease, which lasted 16 months, the home was found to be extensively damaged and diminshed in value.  The home was not used as an Executive Rental, as was contracted, but as home/home school for a family of four. The "home schooling" and other activities during the occupancy resulted in non-normal use of the home, in short, "excessive wear and tear".

As a result, Conejos Capital engaged its insurance company, State Farm, to independently assess items exceeding "normal wear and tear".  State Farm Insurance's designate identified nearly $2,500.00 in physical damages - excluding additional, contractual damages like failing to clean carpets - that, in its professional opinion, exceeded "normal wear and tear". 

A second independent, professional estimate was comparable to the findings of the first estimate.

Here's a subset of the damage that occurred (photographic proof available):

  1. 75+ grey “sticky tack” stains were in the formal dining room and living room where the home school was located – from hanging posters - these required special pre-treatment
  2. 25+ grey “sticky tack” stains in another room in the home
  3. Damaged drywall - chunks missing
  4. Damaged bull nose in the entertainment center from insertion and extraction of the tenants TV (not once, but apparently multiple times)
  5. Gouges in the woodwork that resembled “old phonograph record grooves”, that appeared to be done by dragging keys across it.
  6. Carpet had a 14” x 2” stain on it
  7. Carpet had not been professionally cleaned, per the requirements of the lease
  8. AND, a huge chunk of wood was ripped from the front door jamb, to the point of requiring replacement of the front door frame (with side light).

As a result, Conejos Capital retained the entirety of the $1,500.00 security deposit.  Additionally, Conejos Capital:

  • Complied with the notice portion of the statute, sending the detailed reasons for retention to ExecNet through Conejos' lawyer,
  • Was served with a 7-day notice from ExecNet Properties' designate
  • Was then sued in Weld County Court by ExecNet Properties
  • The court found against Conejos. 

In finding against Conejos, the court:

  • Didn't contest, nor did testimony refute, the professional opinions of the independent 3rd party witnesses
  • Deemed items as "normal wear and tear" that professionals deemed excessive levels of damage to vandalism; moreover, the housing authorities of Boulder and Ft. Collins' standards comport with Conejos' assertions of damages
  • Flatly didn't address a majority of the damages claimed -- simply ignoring them.

We respectfully disagree with the Court's finding and are asking the court to revisit its decision.

For more information, contact us at michael@conejoscapital.com or on the contact section of the home page.

 

Michael Clarkson

Managing Member

Conejos Capital, LLC

 

 

 

 

 

 







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