Can a homeowner sue a contractor if he does not return deposit?

Yes, a homeowner can sue a contractor if the contractor fails to return a deposit, especially if there is a written contract that specifies the terms of the deposit. The homeowner may have grounds for a breach of contract claim, particularly if the contractor did not perform any work or if the contract was canceled according to its terms. It's advisable for the homeowner to document all communications and consider seeking legal advice before proceeding with a lawsuit.