Court Reversed Denial of Litigation Costs
Michigan homeowners who win real estate disputes may recover specific expenses after a court ruling.
Updated on Oct. 7, 2026 in Residential
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An appellate court has reversed a lower court decision that previously denied actual litigation costs to Michigan homeowners Brandon and Pam McEwen. This ruling requires the trial court to award the couple $2,065.15 in costs and expert fees after a neighbor failed to accept an offer of judgment.
Why it matters
The decision clarifies how homeowners can recover expenses when litigation remains necessary after a formal settlement offer is ignored. By limiting the interest of justice exception, the court has reinforced the financial consequences for parties who reject reasonable offers of judgment.
The award consists of $1,315.15 in litigation costs and $750.00 for expert fees, totaling $2,065.15. This follows the Sheltons' failure to respond to an offer of judgment within the required 21-day window.
The players
Brandon and Pam McEwen
Michigan homeowners who successfully challenged a trial court ruling regarding the recovery of their litigation expenses.
The Sheltons
The opposing parties in a real estate dispute who declined a formal offer of judgment.
The details
The court applied Michigan Court Rule 2.405(D)(3) to mandate the reimbursement of actual costs once an offeror obtains a verdict more favorable than their rejected offer. The judges determined that the trial court abused its discretion by incorrectly applying the interest of justice exception to these costs. While the reversal secures the litigation expenses, the court upheld the original denial regarding separate attorney fees.
Timeline
May 1, 2025: The trial court issued the original order denying actual costs and fees.
October 6, 2026: The appellate court issued the decision to reverse the cost denial.
The Home Front
This development highlights the evolving application of Michigan Court Rule 2.405(D)(3) regarding recovery of legal expenses in residential property litigation. It clarifies the boundaries for judges when homeowners seek to recoup costs after rejected settlement offers.
Homeowners involved in civil property disputes should consult with a licensed attorney regarding the strategic use of formal offers of judgment. Review your case documentation to determine if you have filed an offer that exceeds the eventual court outcome, which may entitle you to specific cost recoveries.
The takeaway
This case underscores that strict adherence to court-mandated deadlines for settlement offers can significantly influence your final litigation costs. Homeowners should maintain detailed records of all expert fees and filing costs to ensure they are prepared for potential recovery requests.
Further reading
For more information on navigating property-related legal issues, visit Residential.
Source note: This article includes information reported by Michigan Lawyers Weekly.
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