Despite the most thorough preparation and persistent negotiation, it is possible your claim could reach a dead end. The insurance company might stubbornly deny your claim or offer you too little compensation for the accident and you may want to consider taking your claim to small claims court or arbitration. The process for going to small claims court varies from state to state. Here is the general outline for small claims court in Michigan.

Your case must be filed in the city or county where the transaction or dispute took place, or where the person or business you are suing is located. For instance, small claims in Detroit are handled by 36th District Court, Civil/Small Claims, in Lansing you go to 55th District Court, Civil Division, 15th District Court in Ann Arbor, 63rd District Court in Grand Rapids, 8th District Court in Kalamazoo, and 86th District Court in Traverse City.

To start the case, you (the plaintiff) must file an “affidavit and claim form” with the clerk of the district court. You can go to the court and tell the clerk you want to file a small claims case. The clerk will give you an Affidavit and Claim, form DC 84, to fill out. Or you can fill out the form available here, print it, and bring it to the court.

The cost of filing your lawsuit is $25 for claims up to $600, $45 for claims over $600 up to $1,750, and $65 for claims over $1,750 up to $3,000. Be sure to bring this amount with you when you file your claim. The amount of the fees can be included as part of the judgment against the defendant (the person your are suing) if the judge decides in your favor.

After you have filed your claim, the court will notify the other party that you have filed a claim against them and the date they are to be in court. The defendant can respond before the hearing.The defendant may offer to settle out of court after learning you have filed a suit. If you settle the matter out of court, you can either voluntarily dismiss your lawsuit or obtain a judgment.

The hearing will usually take place at the court where the claim was filed. The court clerk will call the case and both parties will appear before the judge or magistrate. The judge will ask the plaintiff to state his or her claim. When the plaintiff has finished, the defendant will have an opportunity to explain his or her side of the case. Each party may present evidence to support his or her argument. Witnesses will be allowed to tell the court about facts they know that support this evidence. Once you get to small claims court, you will make exactly the same arguments you made to the claims adjuster, only this time a neutral judge will be listening. And the value of your claim—both for personal injury and for any property damage—will be calculated by the judge just as you calculated it using the factors discussed earlier.

A judge’s decision in the Michigan small claims division is final. Neither party can appeal to a higher court once the judge has made a decision in the small claims division; although, on petition by either party, the same judge may reopen the case.

If you obtain a judgment against the defendant, the court will provide you with instructions regarding postjudgment collections.

MI SMALL CLAIMS IN A NUTSHELL

Statues: Michigan Compiled Laws, Ch. 600, Subchapter 84, Sections 8401-8427.

Dollar Limit: $3,000.

Where to Sue: Where defendant resides or where breach or injury occurred. If suing local government entity, suit must be brought in location of that entity.

Service: Personal service. Certified mail with return receipt; mail service must be made by clerk.

Hearing Date: 15-45 days from service.

Attorneys: Not allowed.

Transfer: If either side requests or defendant counterclaims for more than $3,000, case tried under regular civil procedure of court. Either party may, before trial, transfer to general civil division or require that District Court judge hear the case.

Appeals: If trial was before district court magistrate, either side may appeal for new trial to small claims division of the District Court within 7 days. Otherwise, not allowed.

Special Provisions: No equitable relief. Right to sue may not be transferred. No libel or slander, intentional torts or fraud cases. No jury trial. Plaintiff may not file more than five claims in one week. Court may refer cases to mediation or arbitration.
Because court rules may change at any time, always check with the clerk of your Michigan small claims court to verify the accuracy of the information given for your district