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A Better Partnership

September 2015

Sep 2015
September 30, 2015

COA upholds retroactive repeal of the Multistate Tax Compact

In Gillette Commercial Operations North America & Subsidiaries v. Department of Treasury, No. 325258, the Michigan Court of Appeals rejected a number of constitutional challenges to 2014 PA 282, which the Legislature enacted to retroactively rescind Michigan’s membership in the Multistate Tax Compact (the “Compact”).

Sep 2015
September 30, 2015

MSC holds that contracts with unlicensed residential builders are not “void,” contrary to statements in prior precedent

It seems esoteric, but “void” and “voidable”—a distinction that has long confused Michigan courts—may mean the difference between treble damages for conversion and no damages at all.  The Michigan Supreme Court in Epps v. 4 Quarters Restoration LLC, No. 147727, held that contracts with the homeowner might have granted the contractor authority to cash insurance checks to pay for restoration work at the time because the contracts were only ‘voidable” by the homeowner, not “void” from the start.  The Court also confirmed that the occupational code does not bar an unlicensed builder from defending against a homeowner’s claims on the merits and does not create a cause of action for homeowners.

Sep 2015
September 28, 2015

COA holds that a claim for underinsured motorist benefits is a third-party tort claim for purposes of the Michigan Uniform Trade Practices Act

In Nickola v. MIC General Insurance Co., No. 322565, the Michigan Court of Appeals affirmed the trial court’s order denying plaintiff’s request for penalty interest under MCL 500.2006, the Michigan Uniform Trade Practices Act (UTPA).

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