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The Economic Times
The Economic Times

Toll Brothers sued: Michigan woman claims luxury housing project could block access to her land, harm environment

A Michigan woman has taken luxury homebuilder Toll Brothers to court, claiming its proposed upscale housing project could cut off access to her property and damage the surrounding environment.

Susan Miller has filed a lawsuit in the Washtenaw County Trial Court against Toll Brothers Inc., Toll Northeast V Corp, and former developer Red Equities LLC. At the center of the dispute is her 19-acre wooded property in Lodi Township, which sits between two planned luxury housing communities—Arbor Preserve-North and Arbor Preserve-South.

The lawsuit alleges the developers violated Miller's property rights and ignored local environmental protections while moving ahead with plans to build 107 luxury homes and two private wastewater treatment plants.

Why is Susan Miller suing Toll Brothers?

According to the lawsuit, one of the planned wastewater treatment plants and nearby detention ponds will discharge treated water just 10 feet from Miller's property line. She argues this could alter the natural flow of water into a creek on her land that eventually connects to the Rouse Drain and the Saline River.

"Toll's plan for a large luxury housing development claims to address housing needs, but instead destroys a natural landscape and ignores Lodi Township's environmental protections," Miller said.

Her attorney, Sam Estenson, alleged the developers had "surrounded and besieged" Miller after she refused to sell her land.

"At meeting after meeting, local residents raised concerns about environmental damage and violations of township rules, but Toll showed little interest in those concerns," Miller added.

Easement dispute at the heart of lawsuit

A major issue in the case involves the only road providing access to Miller's property from Waters Road.

Court documents state that Miller signed a conditional agreement with Red Equities in 2021. Under the deal, she agreed to give up her original private road easement in exchange for a new access road through Arbor Preserve-South.

The agreement required the new road to be completed by December 31, 2025. If construction did not happen by then, the agreement would automatically expire.

Miller claims the replacement road was never built. Despite that, she alleges the developers recorded the termination of her original easement and the replacement agreement with the Washtenaw County Register of Deeds in 2023 without her knowledge.

Estenson also claimed the developers warned Miller she could face costs exceeding $1 million to build an access road if her original easement remained in place.

What is Susan Miller asking the court?

Miller wants the court to

Reinstate her original access easement.

Cancel the recorded replacement access agreement.

Overturn Lodi Township's approval of the final site plan.

Award more than $25,000 in damages, along with legal fees and court costs.

Toll Brothers responds

Toll Brothers has declined to comment publicly on the case because the litigation is ongoing.

In court filings, the company denied the allegations and described the lawsuit as a "frivolous attempt" to delay the Arbor Preserve development and cause financial harm to Toll Northeast.

The company's attorney, Alan Greene, argued that Toll Brothers Inc. does not legally own the property involved. According to the defense, Toll Northeast V Corp is the entity that owns the land and signed the development agreements.

The defense has also asked the court to dismiss Toll Brothers Inc. from the lawsuit and argued that Miller's easement-related claims were filed after the legal deadline.

How did the Arbor Preserve project begin?

The proposed development traces its roots to a court-approved agreement reached in 2007 after previous developer Peters-Summit LLC sued Lodi Township over an earlier rejected proposal.

Although township zoning rules generally prohibit private wastewater treatment plants, the court agreement created an exception for this property.

Red Equities later proposed more than 400 multi-family housing units in 2020. Following objections from local residents, the plan was revised in 2023 to include 107 single-family luxury homes instead. Toll Northeast V Corp purchased the property in 2024 to continue the project.

According to Estenson, Miller hopes to preserve her wooded property in its natural condition and eventually donate it for environmental conservation.

Judge Julia Owdziej is scheduled to hear Miller's request for a preliminary injunction on August 5. A separate hearing on Toll Brothers' motion seeking partial dismissal of the lawsuit is scheduled for September 16.

Why easement disputes matter

Easement disputes often become some of the most significant legal battles in real estate because they determine whether a property owner can legally access public roads. Even when someone owns land outright, losing an access easement can reduce the property's value and limit future development. Courts typically examine the wording of easement agreements, whether replacement access provides the same practical benefit, and whether all legal procedures were properly followed.

The Arbor Preserve project has been debated for years because of concerns over environmental impact, wastewater management and compliance with local planning rules. Although the project was scaled down from more than 400 housing units to 107 homes, residents have continued to raise questions about water resources, private wastewater treatment plants and the long-term impact on neighboring properties.

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