In Michigan, small claims court is a part of the district court system. However, small claims court differs from the district court in several ways.
First, only civil disputes can be brought in small claims court. Criminal cases are not heard in small claims court.
Second, a lawyer cannot represent either party in a small claims action. Instead, the parties must represent themselves -- this includes arguing the case and presenting evidence to support the arguments.
Third, small claims court only decides disputes involving $5,500 or less.
How is an action initiated in small claims court? The appropriate court form must be filed and the filing fee must be paid, which is based on the amount of the claim.
Once a case is filed in small claims court, it is assigned to a judge or an attorney-magistrate, who will hear and decide the dispute. Next, the court completes a notice of hearing. This notice tells the parties when and where the hearing will be. The court then sends (i.e., “serves”) a copy of this notice to the party being sued (the defendant). The person filing the claim (the plaintiff) must pay the cost of serving this notice.
When the defendant receives the notice of hearing, he or she has several options: 1) settle the claim out of court; 2) request that the case be moved to district court; 3) appear for the scheduled hearing; or 4) ignore the notice and do not appear at the scheduled hearing.
On the day of the scheduled hearing, if both parties show up, they present their case to the judge or attorney-magistrate. If the plaintiff does not appear at the hearing, then the claim is dismissed. If the defendant does not appear, then a default judgment will be entered against him or her.
When a judge decides a small claims case, the decision cannot be appealed – it is final. However, if an attorney-magistrate decides the case, the ruling can be appealed to a judge.
