The State Court Administrative Office has
provided the following information to assist citizens who are considering
filing a small claims suit against an individual or business for an
amount which does not exceed $3,000.
Filing fees for such suits in the Dearborn
court are listed at the conclusion of the text.
What is a Small Claims Lawsuit?
In the small claims division of the district
court you can bring a lawsuit against anyone who owes you money. You
can sue a person or business, which has caused damage to your property
or possessions. The maximum you can collect through a judgment in small
claims court is $3,000.00. Small claims courts are designed to operate
informally and without attorneys present. If you feel you need an attorney
to represent you, the matter must be filed in general civil. In small
claims court you represent yourself, speak directly to the judge or
magistrate, provide your own evidence, and have any witnesses you wish
speak for you. You do not need to know the law before you appear for
a hearing.
You simply tell the judge or magistrate
why you feel that someone owes you money and the person or business
you are suing has the opportunity to tell their side of the case. After
hearing both sides, the judge will decide whether money is owed to any
party, and if so, how much.
When deciding whether to file a claim, consider
whether the person you are suing has any income. Even if the judge grants
you a judgment, if the person you sued has no income, it will be difficult
for you to collect any money. You might want to check this out before
you invest your time and money in filing a claim. Also consider whether
mediation would better resolve your problem.
Before You Start a Lawsuit: Mediation
Filing a lawsuit in court should be used
as a last resort. Make sure you have discussed your problem with the
person or business you are thinking about suing. In many cases, people
and businesses do not know that someone has a dispute with them until
they receive court papers. If talking the problem over does not work,
consider using mediation instead of going to court.
Mediation is a process in which two or more
people involved in a dispute meet in a private, confidential setting,
and with the help of a trained neutral person, work out a solution to
their problem. Mediations are fast, either free or low cost, and effective
in resolving many disputes including landlord/tenant, consumer/merchant,
and neighborhood disputes. In most cases, a mediation meeting can be
set up within 10 days, and 90% of all cases in which both parties to
a dispute agree to use a mediation service result in agreements acceptable
to all sides. If you can work out your dispute in mediation, you may
not need to go to court. Ask the clerk of your local district court
if a mediation program is available in your area, or call 1-800-8RESOLVE.
How to Start Your Lawsuit
If you cannot resolve your dispute through
mediation, you can file a claim against the person or business in the
small claims division of district court. Your case must be filed in
the city or county where the transaction in dispute took place, or where
the person or business you are suing is located. If you are suing more
than one person or business, the suit may be filed in the district court
in which any of the persons live or where any of the businesses do business.
At court, tell the clerk you want to file
a small claims case. You will be given an affidavit and claim form to
fill out. On the form, you name the person or business you are suing
and list reasons why you are suing and the amount you are suing for.
There is a cost for filing a small claim,
which includes postage or service fees; you may view the filing fees
at the end of this section. Be sure to bring this amount with you when
you file your claim. The amount can be made a part of the judgment 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 may 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. If you want an enforceable judgment, the terms of your agreement
must be spelled out in writing and signed by both you and the defendant.
A copy of the agreement must be filed with the court.
If You Have Been Sued in Small Claims
Court
If you are served with court papers from
the small claims court, you are called the defendant. You have several
ways to respond to the affidavit and claim you have received.
If you want to deny the claim, you must
either answer the complaint before the hearing date or appear in court
on the hearing date, bringing with you any evidence you have to support
your denial. If you want an attorney to represent you, you must tell
the court at or before the hearing. The case will be transferred from
small claims court to the regular district court.
If you have a claim against the person who
is suing you, you can also file a counterclaim. Your written counterclaim
should be filed with the court and served by first class mail to the
person suing you.
If you fail to appear for the hearing, the
court may enter a default judgment against you. This means the judge
may grant a judgment for the plaintiff without hearing your statement.
The entry of a judgment
may appear on your credit report.
Preparing for the Hearing
On the hearing date any of the following
may happen:
-
If both the person filing the lawsuit
and the defendant appear, the judge may recommend that the parties
go to mediation and the case may be adjourned. If either party does
not want to try mediation, the hearing may proceed.
-
If the party filing the lawsuit does
not appear, and the defendant does appear, the case will be dismissed.
-
If the defendant does not appear, the
person filing the lawsuit may ask for a “default” judgment.
This means that if the judge decides you have a good claim, you
can obtain a judgment without a hearing since the person or business
you are suing did not appear to challenge your claim.
This might include a sales receipt, guarantee,
lease, contract, or accident report. If a damaged article is too big
to bring with you, photographs can be presented as evidence. Any witnesses
you would like to speak on your behalf should appear in court as well.
Remember, a judge or attorney magistrate
will hear a small claims case; you have no right to a jury trial, and
the hearing will not be recorded.
Either party has the right to ask that the
case be heard in the general district court. The court will notify the
person filing the lawsuit if the defendant makes such a request. In
the district court, both you and the defendant have the right to be
represented by an attorney. Whoever loses the case may be asked to pay
for court costs and attorney fees. Unless defendants are prepared for
the extra expense, they usually agree to have the hearing in the small
claims division.
The Hearing
The hearing will usually take place at the
court where you filed your claim. It is important to be there on time;
if you filed the lawsuit and are not in court when your case is called,
the case may be dismissed. If you are the defendant and are not in court
when your case is called, a default judgment may be entered against
you. Bring all of your relevant papers or other evidence and make sure
your witnesses will be on time.
The court clerk will call your case and
you and the defendant will appear before the judge or magistrate. The
judge will ask you to state your claim. Take your time and tell what
happened in your own words and why you think the person or business
you are suing owes you money. Show the judge your evidence and introduce
any witnesses you have. The witnesses will be allowed to tell the judge
what they know about the case.
When you have finished, the person or business
you are suing will have an opportunity to explain their side of the
case. Listen carefully. If you think the defendant is leaving something
out or is misstating facts, be sure to tell the judge.
A judge's decision is final. Neither
you nor the defendant 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 in the small claims
division. Either party may appeal a magistrate's decision. The
case would be rescheduled before a judge and both parties would explain
their case again.
Collecting Your Money
If you obtain a judgment against the defendant,
the court will provide instructions regarding post-judgment collections.
The defendant may pay the judgment plus court costs immediately after
the hearing, but if he/she does not have the money to pay right away,
the judge may allow a reasonable time to pay and may set up a payment
schedule.
If the defendant fails to pay the judgment
when ordered, you must go back to the court and file additional papers
to collect on the judgment by having their wages or bank account garnished
or property seized. This cannot occur until 21 days after the judgment
is entered. As part of the judgment, the defendant must provide information
to the court that can be used in post-judgment collection efforts.
