Michigan Raises Statutory Limits for Small Claims Court

Governor Snyder has recently signed legislation changing the Michigan Small Claims Courts maximum jurisdictional amount in controversy from $3,000 to $5,000. The increase will take affect on September 1, 2012. The jurisdictional limit will periodically increase up to $7,000 by January 1, 2024.

The jurisdictional increase benefits both businesses and individuals. Businesses should see savings on the cost of litigation on loan defaults, fraud, and other claims. Individuals will also save money on litigation costs. Instead of having to hire a lawyer to handle claims above $3,000, they will now be able to present a case on their own to the judge.

It is important to note that despite the increase in the jurisdictional limit, in order to proceed in small claims court, the consent of both parties is needed. If one party does not want the case to proceed in small claims court, then that party can have the action removed to the district courts. Additionally, attorneys may not be used in small claims court.

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2 Responses to “Michigan Raises Statutory Limits for Small Claims Court”

  1. Eben Pagan AccelerateJune 7, 2013 at 7:45 am #

    Hi! I could have sworn I’ve visited this blog before but after looking at a few of the posts I realized it’s new
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  2. Carol McClureMarch 17, 2015 at 3:49 pm #

    This is valuable information, Thanks…one question. If one of the parties has the action or complaint towards them moved to District Court…does that mean the 2nd, party has to agree to that and incur the cost of an attorney? Or can the 2nd. party who filed the complaint, just drop the small claims action if the first party wants to take it to district court?

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