Filing a lawsuit does have some potential advantages for tenants.
It could Motivate a Landlord to settle outside of court. Notifying your landlord of your intention to sue him or her could motivate your landlord to do everything in their power to avoid actually going to court. He or she may agree to settle with you before the matter ever goes before a judge.
Receive Money You Are Owed: If you sue your landlord and win, you will be awarded the money you are owed, possibly more. For example, if your landlord wrongfully withheld your security deposit, you will be awarded this amount, and in some states, two or three times this amount.
Receive Damages: If you win a court case against your landlord, you may also receive damages. For example, if your unit was uninhabitable, you could be awarded damages for any pain and suffering it caused you.
Clear Your Name: Winning a lawsuit against your landlord could help clear your name. For example, if you are evicted, the eviction would show up on your credit report for years to come. If you are able to prove that your landlord is trying to wrongfully evict you, you can keep your good credit and your good name. Also,if you file suit against your landlord for a wrongful eviction and win, you will not be forced to move from your apartment