Not seeking legal advice. Kept the buyers deposit. Your thoughts?

[Manuel Sarabia]

I was the seller in the transaction. No brokers involved. We used the California state purchase contract used by Realtors for the executed offer. Anyways, 45 day escrow period with the 17 day contingency to get loan approval. The transaction lasted for 110 days before I decided to pull the plug. Some time around day 60 the buyer had to leave the country for several months and left his brother with power of attorney for this property. Basically my contact was with the brother at this point, not the actual buyer.  because communication was difficult through phone or email with the original buyer. I decided the buyer could not close and it was time to cancel, and with me keeping the deposit. The brother agreed and signed the cancellation provided by escrow with the deposit released to the seller. ALl of a sudden I get an email from the buyer that he did not want to forfeit his deposit and that I used my brother. I explained to him that we were out of contract and that his brother agreed to cancel and release the deposit to me. Am I in any way wrong?

I'm about a week away from closing with the new buyer. Does the first buyer have a certain amount of time that he can take me to court for the deposit?($1000)