I'm Lucy, and I'd be happy to answer your questions today.
Most cases regarding the return of a security deposit (and what constitutes "wear and tear") are filed in Small Claims Court and are not appealed, which means that the cases typically don't find their way into the case law books. The books primarily discuss cases heard in the Supreme Court or the Court of Appeals. Even District Court cases wouldn't usually show up. That makes it extremely difficult to point to specific case law unless you're willing to pay someone to spend a few hours searching at their normal hourly rate.
Putting a few nail holes in the wall to hang pictures is ordinary wear and tear and therefore is not something that the tenant is required to pay for. Gaping holes would be considered damaged, or if a wall were so covered with holes that it was all you could see (like when someone uses a wall to hang dozens of pictures in a collage or something). Even in that scenario, the landlord would have to pro-rate the cost of repainting, depending on how long the tenant occupied the apartment. Paint degrades over time, and typically needs to be redone every 3-4 years. So, a landlord would never be entitled to charge the tenant for the full cost of repainting if they stayed a year. At most, you'd get 2/3 or 3/4, depending on the quality of the original paint. If a tenant were to sue over security deductions for paint and nail holes, they would get at least part of what they were charged refunded.
I have managed to find a couple of articles for you that support this response. I hope you find them helpful:
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