California Security Deposit Help!

I have a friend in with a house in CA that was renting his house out.



The rent was $1800 and the SD was $1800.

The renter left and paid half of the rent for his last month ($900)



Additionally; he owes $700 in water bills, and stole the lawnmower ($300).



When my friend talked to him the first time he was going to pull the 900 owing for rent out of the deposit.



Yesterday my friend gets a call saying that the former tenant wants all the $$ and is going to sue to get it.



What are the legal ramifications in California for using the SD to make up the $900 in rent owed and using the rest of it to pay the $700 in water and replace the $300 lawnmower??



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