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Landlord holding deposit, fight or pay?

If you have a 4 bedroom house, lease the rooms to "tenants" and include the rest of the space (kitchen, living room, etc) as "common area". Load factor the rooms w/ the common area as a % / number of rooms added back to the total footage (and cost) of the rooms. IOW, treat it as a commercial venture. If you only rent one room, the remaining rooms are inventory; nor personal assets.

So aside from Dave generally being a friend and good guy overall, that's why he was (is?) your long time roommate!
 
Don't judges lean more to protecting tenants in cali?

Depends on the county, Contra Costa Courts kind of suck all around, and are surprisingly conservative. Alameda is a totally different story.

Since you're going for it, don't waste time arguing with them. Make your demand, give them a date to perform, and then just sue them when they don't and pay a process server $70 to slap the papers on them. You'll get the $70 back as part of the settlement/judgment.

If you really want to be nasty, sue them in limited civil (not small claims). You'll pay a higher filing fee and the filing process is much more difficult, but if your former LLs are dumb dumbs, they won't be able to figure out how to respond without hiring an attorney. Can make it expensive for them, real fast.
 
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