7.3 Small Claims Division
“A small claims division is created in each district as a division of the district court.” MCL 600.8401 . The purpose of the small claims division is to handle relatively minor civil cases for which the recovery of money is the primary purpose in an efficient, uncomplicated, inexpensive, and fair manner. See MCL 600.8411(2) . “The small claims division of the district court shall sit at least once each 30 days at the locations at which the district court is required to sit pursuant to [ MCL 600.8251 ].” MCL 600.8416(1) . See Chapter 1 for a discussion of MCL 600.8251 .
An index of the SCAO-approved forms for use in small claims actions can be accessed on the Michigan One Court of Justice website .
A. Procedural Rules Governing Small Claims Actions
Small claims trials must be conducted “in an informal manner so as to do substantial justice between the parties according to the rules of substantive law[.]” MCL 600.8411(2) .
Small claims actions are governed by the procedural provisions of Chapter 84 of the Revised Judicature Act, MCL 600.8401 et seq. , and by subchapter 4.300 of the Michigan Court Rules. MCR 4.301 . “After judgment, other applicable Michigan Court Rules govern actions that were brought in a small claims division.” Id. Statutory provisions or rules of practice, procedure, pleading, or evidence, except provisions related to privileged communications, 1 do not apply in the small claims division. MCL 600.8411(2) .
B. Required Notice of Right to Removal
“Before the commencement of a trial in the small claims division, the district court judge or magistrate shall inform both parties, orally or in writing, of the right to removal before trial to the general civil division and of all rights waived if they choose to remain in the small claims division.” MCL 600.8411(1) . See also MCL 600.8402(3) (requiring the affidavit commencing the action to inform both parties of the right to removal before trial and to the rights waived if they stay in the small claims division); MCL 600.8408(4) (“Before commencement of a trial, the plaintiff or defendant may, upon demand, require that the trial be conducted before a district court judge and not a magistrate, or may remove the case from the small claims division to the general civil division of the district court.”)
C. Rights Waived in Small Claims Actions
If the parties elect to proceed in the small claims division, they waive the right to an attorney, the right to a jury, the right to recover more than the applicable jurisdictional amount prescribed by MCL 600.8401 , and the right to appeal (except as otherwise provided in MCL 600.8427) . MCL 600.8412 . See also MCL 600.8408(4) (noting that if parties commence a trial in the small claims division, both parties waive all rights mentioned in MCL 600.8412) .
“A party may demand that the action be removed from the small claims division to the trial court for further proceedings by
(1) signing a written demand for removal and filing it with the clerk at or before the time set for hearing; or
(2) appearing before the court at the time and place set for hearing and demanding removal.” MCR 4.306(A) .
See also MCL 600.8408(4) (stating that either party may remove the case from the small claims division before the commencement of a trial); SCAO Form DC 86, Demand and Order for Removal .
“On receiving a demand for removal, the court shall, by a written order filed in the action, direct removal to the trial court for further proceedings.” MCR 4.306(B) . “The order must direct a defendant to file a written answer and serve it as provided in MCR 2.107 [ 2 ] within 14 days after the date of the order.” MCR 4.306(B)(1) . “The party demanding removal must promptly serve the order on the opposing party and file proof of service with the court.” MCR 4.306(B)(2) . “There is no fee for the removal, order, or mailing.” MCR 4.306(B)(3) .
See the Michigan Judicial Institute’s checklist regarding small claims procedures, including removal.
E. After-Hours Filing and Hearings
“A clerk or deputy clerk of the district may be available for filing of claims with the small claims division after regular court hours at the discretion of the presiding judge.” MCL 600.8416(2) .
“Scheduling of small claims hearings shall be done to lessen as much as possible the time that it is necessary for a plaintiff or defendant to be absent from employment. A judge of the district court may be available to hear small claims after regular court hours if the presiding judge determines that evening hours will facilitate the adjudication of small claims cases.” MCL 600.8416(3) .
F. Limitations on Number of Filings
“Within a district court district a person shall not file more than the following number of claims in the small claims division in 1 week:
(a) Except as provided in subdivision (b), a person shall not file more than 5 claims.
(b) A person shall not file more than 20 claims on behalf of a county, city, village, or township.” MCL 600.8407(2) .
G. Prohibited Actions in the Small Claims Division
“Actions of fraud and actions of libel, slander, assault, battery, or other intentional torts shall not be instituted in the small claims division.” MCL 600.8424(1) . However, there are three exceptions:
• an action for fraud under MCL 600.2952 ;
• an action for fraud under the Michigan Consumer Protection Act ( MCL 445.901 – MCL 445.922) ; and
• an action under MCL 324.73109 (the Natural Resources and Environmental Protection Act). MCL 600.8424(1)(a)-(b) .
1 For a discussion of privileged communications, see the Michigan Judicial Institute’s Evidence Benchbook , Chapter 1.
2 “Notwithstanding any other provision of [ MCR 2.107 ], until further order of the Court, all service of process except for case initiation must be performed using electronic means (e-Filing where available, email, or fax, where available) to the greatest extent possible. Email transmission does not require agreement by the other party(s) but should otherwise comply as much as possible with the provisions in [ MCR 2.107(C)(4) ].” MCR 2.107(G)