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Pet Deposit state of WI

So I was under the understanding that a non refundable pet deposit was legal in the state of Wisconsin. After digging deeper I now see that pet deposits are to be refunded... The tenants were told that it was non refundable and its stated in the lease that it is non refundable but they are now talking us to small claims court for the non refundable pet deposit...   Anyone have any experience with this? This is a lease from August of 2015 if that makes any difference.   In the addendum it is stated that they must provide a copy of all vaccination records and registration records. We never received a copy of either. Is that grounds to hold the pet deposit?   I am very frustrated because I used this site to create the lease and at that point pet deposit was clickable as non refundable or refundable.
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any deposit is used for damages and is usually returned with deductions.
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