Eltel Associates, LLC v. City of Pontiac
Michigan Court of Appeals · 2008-04-17 · cited 3×
The case involved a dispute over whether Eltel Associates, LLC was entitled to a refund of 2002 property taxes it paid on three parcels in Pontiac that had previously been owned by the state. The Tax Tribunal denied the city's motion for summary disposition and granted judgment for the petitioner, finding that title to the properties did not transfer until January 24, 2002, when deeds were released from escrow, meaning the parcels remained exempt on the December 31, 2001 tax day. The Court of Appeals affirmed, holding that the tribunal correctly applied Michigan law on conditional escrow deliveries and that the parties' shared erroneous belief about the ownership date constituted a mutual mistake of fact under MCL 211.53a, rather than a mistake of law. The decision rested on the principle that title passes only upon satisfaction of escrow conditions, combined with the statute's allowance for recovery of excess taxes paid due to such factual errors.