Key Facts & Legal Issues:

• In February 2020, Reel em Inn and Resort at Whitefish Lake Inc. (Plaintiff) agreed to purchase the Suomi General Store property in Thunder Bay from RNR Doemel Enterprises, Richard Doemel, and Norma Doemel (Defendants) for $389,900, paying a $50,000 deposit.
• Before closing, the plaintiff discovered nine outstanding work orders related to an unpermitted fuel tank installation and safety violations.
• The defendants refused to sign an amendment confirming compliance or refunding the deposit.
• The sale did not close on April 6, 2020, and the plaintiff demanded the return of the deposit.
• The property remained unsold, with financing difficulties due to unresolved environmental issues.

Court’s Decision:

1. Repudiation & Recission:

   • The defendants repudiated the contract by failing to address the work orders.
   • The plaintiff accepted repudiation, terminating the contract.
   • Even absent repudiation, recission would have been justified due to misrepresentation.

2. Return of Deposit & Unjust Enrichment:

   • $50,000 deposit must be returned, as the defendants wrongfully retained and spent it.
   • Richard and Norma Doemel are personally liable, having deposited the funds in their names.

3. Counterclaims Dismissed:

   • Defendants sought to forfeit the deposit, claim lost profits, and property damages; all were denied.

4. Damages:

   • Punitive and special damages denied due to insufficient evidence.

Final Order: Defendants must repay the deposit, plus pre- and post-judgment interest. Costs to be determined.