Lenawee County Board of Health v. Messerly

Lenawee County Board of Health v. Messerly, 331 N.W.2d 203 (1982), was a case decided by the Supreme Court of Michigan that used a risk of loss analysis to justify the denial of recission as a contract remedy despite the presence of mutual mistake.[1]

Decision

The Pickles bought a 600-square-foot (56 m2) three unit dwelling for use as a rental property from the Messerly's, only to discover that an illegal septic system had contaminated the ground. Pickles sought recission and Messerly sought a deficiency judgment. The Supreme Court of Michigan backed away from the precedent of Sherwood v. Walker in favor of the Restatement (Second) of Contracts, and relied on an "as is" clause in the land contract to deny recission.[2]

References

  1. ↑ Ayres, I. & Speidel, R.E. Studies in Contract Law, Seventh Edition. Foundation Press, New York, NY: 2008, p. 508
  2. ↑ Ayres, p. 508