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They were never in love. Michael and Phyllis had a friends with benfits relationship about 15 years ago. She got possessive and jealous when he was spending too much time with Diane (nothing romantic was going on) and had Michael kidnapped and beat up. Michael thought it was Victor (as he was representing Diane in a divorce case against Victor). When Michael found out it was Phyllis, he cut her off and kicked her out of his apartment. They later became friends again but there was never any hint of sexual attraction after that. They are now more like brother and sister and Phyllis once said Likey was like her family although they aren't as close as they used to be after the Daisy fiasco. Michael was very different back then. Once he fell in love with Lauren he really changed in the way he looked at women and love.
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