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1031 Lapeer LLC v. Price

ELR Citation: 40 ELR 20011
Nos. No. 290995, (Mich. Ct, 08/05/2010)

A Michigan appellate court voided a 10-year-old commercial lease between the landlord and tenant of a gas station because the landlord failed to disclose that the property is, under Michigan law, a "facility" from which hazardous substances were released or disposed. The court reasoned that because the landlord was prohibited under state law from transferring any interest in the property at issue unless he provided the tenant with written notice that the property was a contaminated facility, and the landlord admittedly failed to provide the tenant with such written notice, the contract was founded on an act prohibited by statute and was thus void. The contract was void despite the fact that the facility's status was a matter of public record. Until now, the penalty for violating the state's disclosure requirement was unknown, according to attorneys at Maddin, Hauser, Wartell, Roth & Heller, P.C, a Michigan-based law firm.