Michigan Supreme Court Dismisses Appeal in Case Expected to Clarify Requirements Contract Law

On April 22, the Michigan Supreme Court dismissed the appeal in FCA v. Kamax, a case that was expected to clarify the purchase promises a buyer must make to create an enforceable requirements contract. Michigan law has been confused and uncertain, especially since the Supreme Court’s 2023 Opinion in MSSC v. Airboss. That uncertainty has resulted in many lawsuits and even more commercial conflict, with different state and federal courts disagreeing on the meaning of Airboss. The appeal was dismissed after the parties, days before oral argument, asked that the appeal be dismissed, presumably because of a settlement.

With the Kamax appeal dismissed, Michigan law remains confused, and further litigation remains likely. Butzel’s Automotive Industry Team will shortly issue an additional Alert reviewing the current state of the law and its implications for buyers and sellers.

Please feel free to contact the author of this Client Alert or your Butzel attorney for more information.

Sheldon H. Klein
248.258.1414
klein@butzel.com