I had to cancel a lease on a tenant before it started

[Lisa George]

I signed a lease with a new renter (we will call them renter B) because the current renter (renter A) was moving out early and breaking his lease at the end of the month for work. Renter B gave me their deposit and signed a contract. Things happened where Renter A had to cancel his early termination and now needs to finish his lease so I notified renter B that I cant fulfill their contract and I gave them a full refund of their deposit. Does Renter B have the right to take legal action against me?

[Nathan Gesner]

Quote from @Lisa George:

I signed a lease with a new renter (we will call them renter B) because the current renter (renter A) was moving out early and breaking his lease at the end of the month for work. Renter B gave me their deposit and signed a contract. Things happened where Renter A had to cancel his early termination and now needs to finish his lease so I notified renter B that I cant fulfill their contract and I gave them a full refund of their deposit. Does Renter B have the right to take legal action against me?

I think you're doing it backwards.

Current renter gave notice of termination, which set this all in motion. You both agreed he would be out August 31, so that's the contract and he needs to be out. Why would you allow him to stay when you've already contractually agreed to rent it to the new person?