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Contracts Keyed to Kunz
Lenawee County Board of Health v. Messerly
Citation:
331 N.W.2d 203 (Mich. 1982)
ProfessorMelissa A. Hale
CaseCast™ – "What you need to know"
Facts
In 1971, defendants purchased one acre and a 600-square-foot tract of land that housed a three unit apartment building. Prior to the sale, the seller, Mr. Bloom, had installed an illegal septic tank on the property. Defendants sold the building to James Barnes in 1973 who used it as an income-producing investment. Mr. (and Mrs.) Barnes wanted to sell the property to the Pickles’ but the Pickles’ wanted to deal directly with defendants (the Messerlys) so Mr. an Mrs. Barnes conveyed their interest in the land to the defendants who then sold it to the Pickles’ in 1977; the contract contained an “as is” clause. After the sale, the Pickles’ discovered that sewage was leaking and the department of health condemned the property as unsuitable for human habitation. The board of health and the Pickles’ both sued defendants (the Pickles’ sought rescission of the contract on the basis of the mutual mistake of the illegal septic tank).
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