Business & Finance

Michigan Appeals Court Reverses $1.55 Million Judgment Against Homebuyers

By TOI World Desk

Roger Lewis and Nicole Susser bought a house in Franklin Village, Michigan, for $1.275 million in November 2020. After a home inspection revealed major problems, the couple requested a $150,000 price reduction. Seller Robert Blumberg refused, and subsequent lower requests of $75,000 and $35,000 were also rejected. Lewis and Susser eventually agreed to purchase at the original price, but Blumberg cancelled the sale on December 6, 2020, returning the buyers’ deposit. The couple sued in January 2021, arguing that Blumberg had breached the agreement. A jury found the buyers had breached the contract and awarded Blumberg $1.275 million for the unpaid price, $255,000 in interest, and the buyers’ $20,000 deposit, plus additional costs. The judgment also allowed the buyers a credit of up to $1.275 million if Blumberg sold the property to another buyer. On October 23, the Michigan Court of Appeals overturned the judgment. The appellate court cited two procedural errors: the use of settlement discussion information in the jury’s decision and the omission of the legal principle of anticipatory repudiation, which would have allowed the buyers to avoid certain obligations if Blumberg had clearly indicated he would not complete the sale before the January 2021 deadline. The appeals court reversed both the finding against the buyers and the financial judgment. The case will return to the lower court for further proceedings, and it remains unclear which party ultimately breached the original agreement. The judgment document is available on Justia.