You have an e-mail from him stating that there were no damages noted during the walk through?
The following is from the Ca DCA Landlord/tenant guidelines booklet:
Practically speaking, you have two options if the landlord doesn't honor the 21-day rule. The
first step for both is to call and write the landlord to request a refund of your entire security deposit. You can also suggest that the dispute be mediated. If the landlord presents good
reasons for keeping some or all of your deposit for a purpose listed on page 50, it's probably
wise to enter into a reasonable compromise with the landlord. This is because the other option is
difficult and the outcome may be uncertain.
The other option is to sue the landlord in small claims court for return of your security deposit.
However, the landlord then can file a counterclaim against you. In the counterclaim, the landlord
can assert a right to make deductions from the deposit, for example, for unpaid rent or for
damage to the rental that the landlord alleges that you caused. Each party then will have to
argue in court why he or she is entitled to the deposit.
The 21 day limit is detailed in Civil Code Section 1950.5(g)(1).
But I don't see where it assesses any penalites onthe landlord for non-compliance. So basically you have to take your chances in court.
P.S. Please don't cross post the same question.