Five Key 2025 Court Cases Every Michigan Farmer and Business Needs to Know

Essential Legal Updates for Michigan's Agriculture & Real Estate Businesses

The legal landscape for businesses operating in Michigan is continuously evolving, and understanding key court decisions can significantly impact farmers, real estate professionals, and those involved in the fishing industry. In 2025, several court cases will reshape how organizations operate, especially regarding employment agreements, compliance, tax regulations, and property rights. Here are five crucial cases that every Michigan business should keep an eye on.

1. Rayford v. American House Roseville I, LLC: A Shift in Employment Agreements

In Rayford v. American House Roseville I, the Michigan Supreme Court ruled against the strict enforcement of adhesive employment agreements, specifically those that limit the timeframe for employees to sue employers. This landmark decision requires businesses to reassess their employee onboarding practices to ensure that employees are fully informed about the terms and understand their rights regarding the time limits to file claims. For Michigan's agriculture and real estate sectors, this means investing in training and consultations to ensure compliance with the new standards.

2. Safeguarding Internal Investigations: The FirstEnergy Case

The U.S. Court of Appeals for the Sixth Circuit's ruling in In re FirstEnergy Corporation confirmed the protection offered by attorney-client privilege to documents from internal investigations if initiated with the intent to seek legal advice. For farmers and real estate businesses in Michigan, this reinforces the importance of involving outside counsel in sensitive situations, protecting companies from complications that can arise during regulatory inquiries.

3. VCST International B.V. v. BorgWarner: Clarifying Contractual Disputes

This case from the Sixth Circuit revolves around competing forum-selection and choice-of-law clauses in numerous purchase orders. The court’s decision emphasizes that businesses should ensure their contracts are clear and consistent to avoid drawn-out litigation. For those in agriculture and real estate, whether involved in sales, leases, or supplier agreements, clarity in contractual language is essential to protect interests and streamline operations.

4. Protecting Buyers in Transactions: The HBKY Case

The Sixth Circuit's ruling in HBKY, LLC v. Elk River Export highlights the necessity for buyers to conduct thorough due diligence before transactions. This is particularly relevant for farmers and real estate agents who engage in one-off transactions that may involve complex interests. Not having proper documentation could lead to unexpected financial liabilities, emphasizing the importance of securing comprehensive information before any purchasing decisions.

5. Blake’s Farm: The Scrutiny on Agritourism Operations

In Blake’s Farm, Inc. v. Armada Township, the Michigan Court of Appeals ruled that an agribusiness’s mixed-use property could only claim partial Qualified Agricultural Tax Exemptions because of its commercial operations. This sets a precedent indicating that agritourism operations and farmers must be prepared for scrutiny about how their property is used and ensure they can substantiate their agricultural claims effectively.

Conclusion: Why Staying Informed Is Crucial for Michigan Businesses

The five cases highlighted above underscore the significance of understanding the legal framework affecting various sectors in Michigan, especially for farmers, real estate professionals, and those involved in the fishing industry. Being proactive by educating themselves on these decisions will prepare business owners for potential challenges and help them avoid legal pitfalls. As these rulings illustrate, understanding the law is not just about compliance—it is about empowerment to thrive in Michigan's dynamic business environment.

To stay current with these developments and equipped to make informed decisions, Michigan entrepreneurs, especially in agriculture and real estate, should explore professional legal advice tailored to their specific needs.