Does the landlord owe tenant money?

Tenant moved into a house on a month to month lease in Jan 2011 They have not paid for month of July as of yet. Tenant paid first month, last month, and security, all up front. In July, 2days after rent was late, tenant received a 30 day notice to vacate, and a court date. If this is the last month tenant is in house and did not pay for July (also no damages), does tenant owe LL rent (if last month was already paid)? What will happen in court?