10/20/2026
We wanted to make you aware of a recent Michigan Supreme Court decision that may significantly impact residential builders and developers. In Attorney General v. Eli Lilly & Co. (2026), the Court narrowed the applicability of an important exemption under the Michigan Consumer Protection Act (MCPA). Historically, many regulated businesses, including licensed residential builders, could often argue that their licensed status and participation in a regulated industry provided protection from MCPA claims. The Court has now rejected that broad interpretation.
While the decision does not eliminate available defenses, it increases the importance of clear documentation, accurate representations, carefully drafted contracts, and consistent customer communications. Builders, developers, and their advisors should consider reviewing current practices and forms to better manage this evolving risk.
As the industry adapts to this important decision, eTITLE Agency will be communicating with its valued builder, developer, and lender clients regarding practical measures that may help reduce exposure to these newly expanded consumer protection claims.