Q: They were suppose to have deposit or portion by june 30th. I hand delivered it on July 1st
A: You can certainly argue that they received the refund as soon or sooner than if you had mailed it on June 30th and thus no penalty should be assessed, but the statute says the landlord shall return it to the tenant not later than 31 days and that generally means 31 days, not 32. Do note, however, that the 31 days does not start to run until both the tenancy is terminated and the tenant restores possession to the landlord. So arguably if the tenant moves out without providing 30 days advanced notice, their tenancy may not terminate until the end of that 30 days which also might extend the starting date of the 31 days. Given that if the tenant elects to sue you for the money, the winner gets a judgment against the loser for their court costs and attorney's fees, and attorney's fees are likely to dwarf the disputed penalty amount, you may want to just pay it quick before any attorney's fees attach as well. Good luck.
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