Michigan Condominium Act: House Bill 5980 (2016)

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Proposed Amendment to the Michigan Condominium Act: House Bill 5980 (2016) would require mediation of disputes prior to initiating litigation under MCL 559.154

Michigan House Bill 5980 was introduce on October 19, 2016, which would modify the Condominium Act. House Bill 5980 would amend MCL 559.154 and require that all disputes involving the interpretation of the application of the condominium documents or arising out of disputes among or between co-owners be submitted to mediation prior to any party commencing a lawsuit, unless the matter is submitted to arbitration. House Bill 5980 proposes amending MCL 559.154, in pertinent part, as follows:

(8) The bylaws shall contain a provision providing that arbitration of PROVIDE THAT disputes, claims, and grievances arising out of or relating to the interpretation of the application of the condominium document DOCUMENTS or arising out of disputes among or between co-owners shall be submitted to arbitration and that the parties to the dispute, claim, or grievance shall accept the arbitrator's decision as final and binding, upon the election and written consent of the parties to the disputes, claims, or grievances and upon written notice to the
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Interpretation of condominium documents is something that is done as a matter of law. See Hastings Mut Ins Co v Safety King, Inc, 286 Mich App 287, 292; 778 NW2d 275, 278 (2009) (“If the contractual language is unambiguous, courts must interpret and enforce the contract as written because an unambiguous contract reflects the parties’ intent as a matter of law.”) Specifically, the condominium documents constitute a contract and the interpretation of a contract is best left to a judge, who has formal training in interpreting contracts, and not a mediator that may have never attended law school. See Rossow v Brentwood Farms Dev, Inc, 251 Mich App 652, 656; 651 NW2d 458, 460–61 (2002) (“The Master Deed and Bylaws ran with Plaintiffs property as a matter of law and