The Texas Second Court of Appeals ruled on June 2026 that landlord Albert Li must return $880.32 to tenant Blake Vaughn, rejecting Li’s claim that the full $1,950 security deposit was consumed by property damage. The decision, reported by Justia US Law, affirmed a trial court judgment that split the difference between Li’s $1,649.35 itemized damage bill and Vaughn’s demand for a full refund plus legal costs.
The dispute traces back to April 30, 2022, when the Vaughn family—mother and two brothers—vacated their Tarrant County home. Li claimed he found the front door open, weeds overgrown, and all four locks changed without notice. He moved some belongings to the backyard to prepare the unit for new tenants. Vaughn’s mother alleged she was locked out that evening, leaving a medical device inside.
Li’s repair invoice included carpet replacement, wall patching, and landscaping fixes, totaling nearly $1,650. Vaughn contested these charges, arguing the carpet was already worn and the walls had pre-existing holes. Li admitted inspecting the home on April 29 and initially deeming the carpets clean, a detail that undermined his later claim of extensive damage. The court found no evidence of bad faith in Li’s actions, despite the chaotic handover, and awarded court costs to the landlord.
Vaughn retains the $880.32 refund but absorbs the legal expenses of the appeal. The ruling serves as a reminder for Texas tenants: while landlords cannot keep deposits for pre-existing damage or normal wear, proving 'bad faith' to recover attorney fees is a high bar. Li has not indicated an intention to seek further review, leaving the financial settlement final.