“Successor” to the developer

In Walnut Brook Dev. Co. v Deflorio, an unpublished Michigan Court of Appeals decision, the court found that a corporation that purchased all of the assets of the developer of a condominium, but did not assume the liabilities, was nonetheless a “successor” of the developer such that it could exercise a right of first refusal reserved in the condominium documents to the developer.

It appears that the court of appeals will be fairly liberal in finding successorship to a failed developer.  While no court has yet considered the meaning of “successor developer” as defined in the Michigan Condominium Act, this case suggests that a “successor developer” under the Act likely will have all of the rights of the original developer.

© Steve Sowell 2017