Small claims or a regular lawsuit? The court you pick decides which rights you keep
I am Mitchell Bisson, a Grand Rapids civil litigation lawyer. I have litigated for over 15 years. This page explains how Michigan sorts civil money disputes among the small claims division, the general civil division of the district court, the circuit court and the business court docket, and what a person gives up by staying in small claims. I advise people on whether to file in small claims, whether to leave it after being sued there, and which court a larger claim belongs in. I do not promise outcomes.
The short answer. The small claims division handles money claims up to $7,000. MCL 600.8401. A lawyer may not take part in a small claims case except on the lawyer’s own behalf, and a party who lets the trial start there gives up the right to counsel, a jury, a recovery above the limit and, for the most part, an appeal. MCL 600.8408(1), (4); MCL 600.8412. Either side can move the case to the general civil division of the district court before the trial starts. The district court has exclusive jurisdiction over civil claims of $25,000 or less. MCL 600.8301(1). Nothing here predicts how your case will end.
Most small claims disputes in Kent County are ordinary money problems: an unpaid invoice, a returned deposit, a repair that was never finished, a bill a customer will not pay. The amounts look small, but the choice of court can matter more than the amount. Small claims is fast and informal. It is also a place where a party has no lawyer, no jury and almost no appeal, and where a judgment is conclusive on both sides. MCL 600.8413.
The decision usually comes at one of two moments. If you are the one filing, it comes before you sign the affidavit that starts the case. If you are the one being sued, it comes before the hearing date on the notice you received, because the right to move the case is lost once the trial begins in the small claims division. MCL 600.8408(4). That is why I would rather talk about the choice before either of those dates passes.
A lawyer cannot appear for you in small claims, and I will not tell you otherwise. What I can do is help you weigh the choice, prepare you for the hearing if you stay, and take the case if it is filed in or moved to the district or circuit court. The deadline to sue is set by the type of claim, not by the court. For example, the period for breach of contract is 6 years for a claim not described in the other subsections of the statute, and the period for injury to person or property is 3 years in most cases. MCL 600.5807(9); MCL 600.5805(2).
Michigan civil courts at a glance
The table sets out the main differences. The sections after it explain how the rules work in practice.
| Court or docket | What it hears | Lawyers, jury and appeal | Authority |
|---|---|---|---|
| Small claims division of the district court | Cases for the recovery of money where the amount claimed does not exceed $7,000 (the figure since January 1, 2024) | A lawyer may not take part except on the lawyer’s own behalf. No jury and no verbatim record. Parties who stay are treated as waiving counsel, a jury, a recovery above the limit and any right of appeal, except an appeal from a magistrate’s decision to the district judge within 7 days | MCL 600.8401; MCL 600.8408(1); MCL 600.8411(2); MCL 600.8412; MCL 600.8427 |
| General civil division of the district court | Civil actions where the amount in controversy does not exceed $25,000. Limited equitable authority in the situations MCL 600.8302 lists | Lawyers may take part. The bar on counsel and the waivers apply to the small claims division. After a case is removed, the rules for other civil actions govern | MCL 600.8301(1); MCL 600.8302; MCR 4.306(E) |
| Circuit court (17th Judicial Circuit for Kent County) | Original jurisdiction over civil claims and remedies except where the constitution or a statute gives exclusive jurisdiction to another court or denies it to the circuit court | Lawyers may take part. The rules for other civil actions govern | MCL 600.605; MCL 600.518 |
| Business court docket in the circuit court | An action must be assigned to the business court if all or part of it is a business or commercial dispute as the statute defines that term. Personal injury actions and product liability actions with an individual claimant are excluded | Same procedure as other circuit cases. Assignment is by blind draw. A party may ask the chief judge to review an assignment, and that ruling is not appealable under MCL 600.308 | MCL 600.8031; MCL 600.8033(1); MCL 600.8035(1), (3), (4), (7) |
| Collecting a judgment in small claims | The judge orders payment in a lump sum or installments and stays collection while the defendant complies. Garnishment may not issue before judgment | A writ of garnishment may not issue until 21 days after the judgment is entered. The statute carves small claims judgments out of the district court judgments it treats as judgments of a court of record, so the 6 year period for a judgment from a court not of record applies to an action on one | MCL 600.8410; MCL 600.8409(1); MCR 4.305(C); MCL 600.5809(3) |
How a Michigan small claims case works
A small claims case starts when the plaintiff files an affidavit with the clerk of the district court, on the form the state court administrator prescribes. The clerk will prepare the affidavit on request. MCL 600.8402(1); MCL 600.8403. The affidavit has to give the plaintiff’s full and correct name and say whether the plaintiff is a corporation, partnership, sole proprietorship or individual, and any assumed name the plaintiff was using when the claim arose. MCL 600.8402(2). The statute sets the filing fee at $25 if the amount in controversy is $600 or less, $45 if it is over $600 and up to $1,750, and $65 above that, plus postage for each defendant mailed. MCL 600.8420(1), (2). Fees change, so confirm the amount with the clerk when you file.
The clerk serves the defendant with the affidavit and a notice to appear. The hearing date must be at least 15 days and not more than 45 days after the date of the notice. MCL 600.8404(1); MCL 600.8406(1). Service is by certified mail, return receipt requested and deliverable to the addressee only, or by personal service, or as the court orders if service cannot reasonably be made those ways. MCL 600.8405. If the defendant was not personally served, or did not sign the return receipt, at least 7 days before the appearance date, the court has no jurisdiction to render judgment unless the defendant appears and does not ask for a continuance. MCL 600.8406(2).
Before the trial begins, the judge or magistrate must tell both parties orally or in writing about the right to remove the case to the general civil division and about the rights they give up by staying. MCL 600.8411(1). At the hearing, witnesses are sworn, and the judge conducts the trial informally, is not bound by the rules of practice, pleading or evidence except those on privileged communications, and no verbatim record is made. MCL 600.8411(2). The notice tells each side to bring all books, papers and witnesses needed to establish a claim or defense. MCL 600.8404(1)(b). In practice that means your photographs, invoices, texts and a person who saw what happened, not a legal argument.
Who can use small claims, and what cannot be brought there
Several rules keep small claims for simple money cases between the people actually involved:
- A claim cannot be filed or prosecuted by an assignee of a claim or by a third party beneficiary. MCL 600.8407(1)
- Actions of fraud, libel, slander, assault, battery or other intentional torts cannot be started in small claims. The statute carves out a fraud action under MCL 600.2952 and one under the Michigan consumer protection act. MCL 600.8424(1)
- The State and other governmental agencies cannot be parties, except that a county, city, village, township or school district may sue there or be sued there, and a party cannot assert a claim against one of those local units for which it has immunity. MCL 600.8424(2), (3)
- In a district court district, one person may not file more than 5 small claims in a week, and not more than 20 on behalf of a county, city, village or township. MCL 600.8407(2)
- A business filing a claim must act through the right person. A claim for a corporation must be filed by a full-time salaried employee who knows the facts, and a claim for a sole proprietorship or partnership by the proprietor, a partner or a full-time salaried employee who knows the facts. MCL 600.8407(3)
- A sole proprietorship, partnership or corporation can be represented at the hearing by an officer or employee with direct and personal knowledge of the facts in dispute. If that person has left or is medically unavailable, the supervisor, the proprietor, a partner, an officer or a board member may appear. A collection agency and its agents cannot take part. MCL 600.8408(1), (2)
The statute names sole proprietorships, partnerships and corporations. It does not mention limited liability companies. If an LLC is a party, I confirm with the clerk how that district court handles the entity before anyone relies on the rule. A person or business may be sued in any name it used in advertising, invoices, signs or contracts, and a judgment in that name is valid if the business is accurately identified by an address. MCL 600.8426.
If you are sued in small claims: your choices
The notice you receive tells you when and where to appear, to bring your books, papers and witnesses, that failing to appear can result in a judgment up to the small claims limit or the amount claimed, whichever is less, with costs, and that even without a legal defense you may appear to ask for installment payments. MCL 600.8404(1). If you do not appear, a default judgment may be entered if the claim is liquidated, or the court may take the plaintiff’s proofs if it is not. MCR 4.304(B)(1).
Before the trial begins you can demand that the case be moved from the small claims division to the general civil division of the district court. A written demand signed and filed with the clerk at or before the time set for hearing works, and so does appearing at the hearing and making the demand. There is no fee for the removal, the order or the mailing. MCR 4.306(A), (B)(3). After removal, the court orders the defendant to file a written answer within 14 days, and a defendant who does not answer or move in time is defaulted. MCR 4.306(B)(1), (D). The plaintiff’s affidavit then stands as the complaint, although a defendant who cannot answer without more detail may move for a more definite statement within the time to answer. MCR 4.306(C). After removal, either party may amend its own pleadings to increase the amount claimed by paying any difference in the filing fee. MCL 600.8425(2).
If your own claim against the plaintiff is bigger than the small claims limit, there is a separate path. You can start your own action in a court that has jurisdiction and, at or before the hearing time, file an affidavit with the small claims clerk, attach your complaint and pay a $1.00 transmittal fee. The small claims case is then transferred and the two actions are tried together in the other court. MCL 600.8423. If you file a verified answer stating a counterclaim, the court may grant a continuance on request. MCL 600.8422.
Whether to move depends on the facts. Staying keeps the case cheap and fast, but gives up the right to a lawyer, a jury, discovery and an appeal. Moving costs more and takes longer, but you can have a lawyer, take testimony before the hearing and preserve an appeal. I look at the amount at stake, how contested the facts are, whether the other side has a lawyer in the wings, and what a judgment would do to you, and then I tell you which way I would lean.
Defenses and answers I look at
The case does not belong in small claims. If the claim is for fraud, defamation, assault or another intentional tort, the statute bars it from the division unless it fits one of the carve outs. If the plaintiff is an assignee, such as a debt buyer, the statute bars the claim there. MCL 600.8424(1); MCL 600.8407(1).
The wrong person filed or appeared. A corporation must file through a full-time salaried employee who knows the facts, and a business appears through an officer or employee with direct and personal knowledge. MCL 600.8407(3); MCL 600.8408(2).
Notice or service was defective. The 15 to 45 day appearance window and the 7 day service rule are statutory. If you were not served in time and do not appear, the court has no jurisdiction to render judgment. MCL 600.8406(1), (2). The rule is a reason to raise service before anything else, and a reason not to ignore a notice you think is defective.
The venue is wrong. In districts of the second or third class, a small claims case is filed in the district where the cause of action arose or where a defendant is established, resides or is employed, with separate rules for suits against local governments. Every Kent County district is a second or third class district under the statute that creates them. MCL 600.8415(2); MCL 600.8130; MCL 600.8128a. If the case is removed after being properly filed, the court may not change venue just because the original venue would have been improper in the general civil division. MCL 600.8415(5).
The debt is real but you cannot pay it all at once. Even without a legal defense, the notice tells the defendant to appear and request installment payments. The judge orders payment in a lump sum or in installments the judge considers just and reasonable and stays collection while the defendant complies. MCL 600.8404(1)(e); MCL 600.8410(2).
Judgments, costs and collection
The prevailing party in small claims is entitled to the costs of the action and the costs of execution, including the cost of serving the notice. MCL 600.8421. A settlement before or at the hearing must be in writing and signed by both parties, and the judge may enter it as the judgment or require a full hearing. MCL 600.8410(1). If the defendant settles at or before the hearing, the notice warns that the defendant may be charged the plaintiff’s costs of starting the case. MCL 600.8404(1)(d).
A small claims judgment states the warning that failure to pay may result in execution against the defendant’s property and an examination of the defendant’s assets. If the defendant was not present at the entry of judgment, or does not pay at once, the judge orders the defendant to pay in full or disclose in writing the place of employment and the location of bank accounts within 30 days. MCL 600.8410(4), (5). Garnishment cannot issue before judgment, and a writ cannot issue until 21 days after the judgment is entered. MCL 600.8409(1); MCR 4.305(C). If the defendant does not pay as ordered, the clerk certifies the judgment on the plaintiff’s application. MCL 600.8418. A small claims judgment can be modified or vacated in the same way as other civil judgments, but the rule says an appeal may not be taken from that kind of order. The appeal from a magistrate’s decision to a district judge is a separate statutory path. MCR 4.305(B).
The time limit to sue on the judgment is separate from the time to enforce it. The statute sets 10 years for an action on a judgment of a court of record and 6 years for one from a court not of record, and it says a judgment entered in the small claims division is not a judgment of a court of record. MCL 600.5809(3). I calendar that date for a small claims judgment I am asked to enforce.
When a dispute is a business or commercial dispute
A claim above the district court limit is filed in circuit court, and in Kent County some of those cases go to the business court docket. The statute defines a business or commercial dispute as an action in which all parties are business enterprises (unless the only claims are ones the statute excludes), an action between a business enterprise and its present or former owners, managers, shareholders, members, directors, officers, agents, employees, suppliers, guarantors of a commercial loan or competitors that arises out of those relationships, or an action in which a party is a nonprofit and the claims arise out of its structure, governance or finances. MCL 600.8031(1)(c). Personal injury and malpractice actions, and product liability actions where a claimant is an individual, are excluded. MCL 600.8031(3).
If any part of an action is a business or commercial dispute, it must be assigned to the business court, even if it also contains claims that are not. If a counterclaim or amendment later adds a business dispute, the case is reassigned. MCL 600.8035(3), (6). Every circuit with at least 3 circuit judges must have a business court, and the 17th Judicial Circuit, which is Kent County, has more than that. MCL 600.8033(1); MCL 600.518. For a business owner deciding where to file a dispute with a vendor, a customer or a former partner, the real question is often whether to bring it as a small claim for part of the money or as a full case that includes everything. Splitting a claim to fit the small claims limit means giving up the excess, and a judgment bars a later action for the excess. MCR 4.302(D).
How I handle a court choice or small claims case
- Pin down the claim. I read the contract, invoices, messages and photographs, and I work out the amount claimed, the date the claim accrued and who the proper parties are, including whether a business is sued in the right name.
- Check what the small claims division can and cannot hear. I test the claim against the statutory exclusions, the limit, the venue rule and the rules on who may file and appear.
- Set out the choice in writing. I compare staying in small claims, moving to the general civil division, and filing in district or circuit court, with the cost, speed, discovery and appeal consequences of each.
- Protect the deadline. If you were sued, I note the hearing date and the date a removal demand has to be filed. If you are the plaintiff, I confirm the limitation period before the affidavit is signed.
- Prepare the hearing or the answer. If you stay in small claims, I help you organize your exhibits and witnesses and explain what the judge is likely to ask, but I do not appear. If the case is moved, I prepare the answer and any counterclaim.
Ways a small claims or court choice dispute may end without a trial
A written settlement. The statute lets the parties settle before or at the hearing on terms they agree to, in a writing both sign, and the judge may enter it as the judgment. MCL 600.8410(1).
An installment agreement. A defendant who owes the money but cannot pay at once can ask for installments, which the judge sets, and the judge stays collection while the defendant complies. MCL 600.8410(2).
Whether to settle is your decision. I give you my view of the strengths, the weaknesses and the cost of going on, and I do not promise outcomes.
What I need from you
Bring the summons or small claims notice and note the date and manner of service, because every deadline runs from those. Bring the contract, invoices, estimates, receipts, photographs, texts and emails, a timeline with dates and amounts, and the names of anyone who saw what happened. If you are a business, tell me who has direct and personal knowledge of the facts and who is authorized to appear. Do not ignore a small claims notice, do not let the trial start in the small claims division until you have decided whether you want to stay, and do not agree to a payment plan or sign a settlement until it has been read against the claim. Do not delete messages, and do not contact the other side to argue about the case once it has been filed.
Where your Kent County small claims or civil case will be heard
I represent clients in Grand Rapids, Kentwood, Grandville, Wyoming and across Kent County. Michigan law sets the Kent County district courts by municipality. The 61st District Court serves the city of Grand Rapids, the 59th serves the cities of Grandville and Walker, the 62A serves the city of Wyoming and the 62B serves the city of Kentwood. MCL 600.8128a; MCL 600.8130(1)-(3). The 63rd District Court serves the rest of Kent County, which includes the cities of Rockford, Lowell, Cedar Springs and East Grand Rapids and the surrounding townships. MCL 600.8130(4). Under MCL 600.8301(1), the district court has exclusive jurisdiction in civil actions when the amount in controversy does not exceed $25,000, and small claims is a division of that court for claims up to $7,000. Larger claims are filed in the circuit court, which for Kent County is the 17th Judicial Circuit. MCL 600.518. A dispute that meets the statutory definition of a business or commercial dispute is assigned to the circuit court’s business docket. MCL 600.8035(3).
Why people hire me for a Michigan small claims or court choice matter
You work directly with me, the lawyer handling your case. I tell you what the court can and cannot do with your claim, where it is strong and where it is thin, and what each choice costs you. I do not promise outcomes. Where the law keeps a lawyer out of the courtroom, as in small claims, I say so at the start and tell you what I can do instead.
My fee depends on the type of case, how complicated it is and how far it is likely to go. We talk about the fee at the consultation, before you decide whether to hire me.
Questions I hear from people choosing a Michigan court for a money dispute
Can I recover my attorney fees if I win a lawsuit in Michigan?
Usually not. Michigan follows the American rule: each side pays its own lawyer unless a statute or court rule expressly authorizes fees, as the Supreme Court explained in Haliw v Sterling Heights and MCL 600.2405(6) confirms. Examples include the Consumer Protection Act, Lemon Law, Whistleblowers’ Protection Act, Elliott-Larsen Act, statutory conversion, frivolous claims, and offers of judgment.
What is the small claims limit in Michigan, and can I bring a lawyer?
The small claims division of the district court hears money claims up to $7,000, a limit in effect since January 1, 2024 under MCL 600.8401. Under MCL 600.8408(1), an attorney may not take part in filing, prosecuting, or defending a small claims case except on the attorney’s own behalf. Either side may demand a district judge instead of a magistrate or remove the case to the general civil division, and a written demand filed at or before the time set for the hearing is the safe course under MCR 4.306(A).
Which court hears a civil claim in Michigan, district or circuit?
Under MCL 600.8301(1), the district court has exclusive jurisdiction in civil actions when the amount in controversy does not exceed $25,000. Small claims, within the district court, hears money claims up to $7,000. Larger claims are generally filed in circuit court, where business disputes may be assigned to the business court docket. Other statutes and equitable claims can affect which court is proper.
Can a business represent itself in Michigan small claims court?
Yes, through the right person. MCL 600.8408(2) lets a sole proprietorship, partnership, or corporation appear through an officer or employee who has direct and personal knowledge of the facts in dispute. If that person is no longer employed or is medically unavailable, the representation may be made by that person’s supervisor, or by the sole proprietor, a partner, an officer, or a board member.
What kinds of cases go to the Michigan business court?
Under MCL 600.8031, a business or commercial dispute includes an action in which all parties are business enterprises, certain actions between a business and its owners, managers, members, directors, officers, employees, suppliers, competitors, or commercial loan guarantors, and certain nonprofit governance disputes. Under MCL 600.8035, an action must be assigned to the business court if any part of it is a business or commercial dispute.
Does Kent County have a business court?
Yes. Michigan law requires a business court in every circuit with at least 3 circuit judges (MCL 600.8033(1)), and Kent County’s 17th Circuit has well over that number. A case belongs there if all or part of it is a business or commercial dispute as MCL 600.8031 defines it. Confirm the current local procedure before filing.
I was sued in Michigan small claims court. What are my options, and can I move the case to the regular district court?
The notice to the defendant states when and where to appear, that both sides bring witnesses and papers, that failing to appear can lead to judgment, and that a defendant with no legal defense may still appear to ask for installment payments. Before trial begins, either side can demand that a district judge hear the case or remove it to the general civil division of the district court. After removal the court orders the defendant to file a written answer within 14 days, and a defendant who does not answer in time is defaulted.
Related Michigan pages
- Grand Rapids civil litigation attorney
- Defending a lawsuit
- Collecting a judgment
- Service of process and default judgments
- Appeals from district court, agencies and probate
- How the Kent County business court handles commercial cases
I advise people and businesses on small claims and civil court choice in Kent County and West Michigan. Contact me 24/7 by phone or email. Your Rights, My Fight! Call for a free initial consultation.
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Law Offices of Mitchell S. Bisson, 2828 Kraft Ave SE, Suite 295, Grand Rapids, MI 49512, serving Kent County and West Michigan.
This page provides general information about Michigan law and is not legal advice. Reading it does not create an attorney-client relationship. Laws change and every case turns on its own facts. Consult a licensed attorney about your specific situation.