Michigan Small Claims Business Defendant: How to Represent Your Company

Your Business Got Sued — Who Shows Up to Court?

When a customer, vendor, or contractor sues your business in Michigan small claims court, the first question isn't about the merits of the case. It's about who walks into the courtroom.

Under MCL 600.8408, attorneys are strictly prohibited from representing parties in small claims hearings. That's a headache for individuals, but it creates a specific problem for businesses: someone from your company has to represent it in person, and not just anyone qualifies.

Who Can Represent a Business Entity

Michigan small claims rules are precise about this, and sending the wrong person can result in a default judgment.

Sole proprietorships, partnerships, and corporations. Under MCL 600.8408(2), an officer or employee with direct and personal knowledge of the facts in dispute may represent the business. If that person is no longer employed or is medically unavailable, the person's supervisor may represent the business; the statute also allows the sole proprietor, a partner, or, for a corporation, an officer or member of its board of directors.

LLCs. MCL 600.8408(2) does not name LLCs. Confirm with the court clerk who may appear for your LLC before the hearing.

"Personal knowledge" means the representative was directly involved in or witnessed the events at issue — not that they read about it in company files the night before. If a customer is suing over a botched service call, the technician who performed the work or the manager who handled the complaint is a better representative than the company's accountant.

When Removal to General Civil Makes Sense

The no-attorney rule is the biggest strategic consideration for business defendants in small claims. If the dispute involves complex contract terms, significant dollar amounts near the $7,000 cap, or industry-specific regulations that need legal interpretation, the inability to have counsel in the courtroom is a real disadvantage.

Form DC 86 removes the case to the General Civil Division, where you can hire an attorney, request a jury trial, and use formal discovery. There's no filing fee for the demand itself. But there's a critical catch: once the court enters the removal order, the defendant must file a formal written answer within 14 days under MCR 4.306(B)(1), serving it as provided by MCR 2.107. Miss that deadline and you face a default judgment in General Civil — which is harder to set aside than a small claims default.

The cost-benefit calculation is straightforward. If the claim is for $1,500 and the facts are simple, the legal fees for a General Civil case will likely exceed the disputed amount. Stay in small claims and let your officer or employee present the case directly. If the claim is for $6,500 and turns on the interpretation of a services agreement, an attorney's involvement may be worth the cost.

Preparing Your Business's Defense

Business defendants have one advantage individuals often lack: organized records. Use them.

Contracts and terms of service — pull the original agreement that governed the transaction. If the customer signed terms that disclaim liability for the issue they're suing over, bring the signed copy.

Communication trail — emails, invoices, work orders, job logs, and customer service records that show the timeline of the dispute.

Proof of delivery or completion — signed delivery receipts, completion certificates, or client sign-off forms.

Financial records — payment history showing what the customer paid and when, any refunds already issued, and credit notes applied.

Organize everything chronologically and print three sets: one for the judge or magistrate, one for the plaintiff, and one for your representative's reference. Omit protected personal identifying information from court filings under MCR 1.109(D)(9), and ask the court how to submit exhibits that contain it under MCR 1.109(D)(10).

What Happens If the Wrong Person Shows Up

If your business sends someone who doesn't meet the representation requirements — a retained attorney, an independent contractor, or an employee without personal knowledge — the judge may refuse to hear the case on your behalf. That can result in a default judgment, the same outcome as if nobody showed up at all.

Some courts will give you one chance to correct the problem by adjourning to a new date so the proper representative can appear. Don't count on it. Identify the right person early and make sure they clear their schedule for the hearing date.

The Michigan Small Claims Response Guide includes a business defendant preparation checklist covering representative eligibility, evidence organization for commercial disputes, and the removal decision framework.

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