I'm going to go ahead and assume that EJ has at least as much legal representation as I'd have any time I ended a lease with a significant security deposit, and if you don't think that's reasonable, I don't care; I simply think you're wrong. The world will nonetheless continue turning on its axis.

It may be surprising to you but a lot of people are not so lawyerly. I myself have never used a lawyer for a personal matter despite many situations where it sounds like you would. It's just not my thing I suppose and I don't believe I'm alone. Not saying it's better or worse.

I would immediately have a lawyer involved as well, but then I can't imagine finding myself in EJ's position to begin with, i.e. renting my home out to a complete stranger without even a background check. I think we're dealing with a rather different mind set here, and not the "lawyer up" type.