Michigan Small Claims Court for Contractor Disputes: Suing for a Deposit or Bad Work

You paid a contractor $3,500 to redo your kitchen cabinets. They cashed the check, showed up once, then stopped answering calls. Or maybe the work got done — but it was so far below what was agreed that you need someone else to fix it. Either way, Michigan small claims court can help you recover up to $7,000 without hiring a lawyer.

Check Whether Your Claim Fits

The Small Claims Division handles money disputes only. If your contractor dispute involves getting money back — a deposit for work never started, the cost to repair shoddy workmanship, or a refund for materials never delivered — it fits. Claims up to $7,000 are within the jurisdictional limit. If your damages exceed that amount, you can still file in small claims but you permanently waive anything above $7,000.

What small claims can't do: it can't order the contractor to come back and finish the job. That would be specific performance, which requires the General Civil Division. If what you really want is your money back, you're in the right place.

Identify the Correct Defendant

This step trips up more homeowners than any other. A contractor who goes by "Mike's Remodeling" on his truck might legally be Michael Thompson operating as a sole proprietor, or he might be an officer of Thompson Home Improvement LLC — and those require different naming on your court forms.

Search the LARA Business Entity Search for the contractor's business name. If they're a registered LLC or corporation, you'll find the exact legal name and the registered agent's address for service of process. If nothing comes up, check for an assumed name filing with the county clerk where they operate.

• Sole proprietor: "Michael Thompson d/b/a Mike's Remodeling"
• LLC: "Thompson Home Improvement LLC" (use the exact LARA name)
• Corporation: "Thompson Homes Inc." (exact registered name)

Getting this wrong means your judgment, even if you win, can't be enforced against the business's assets.

Build Your Evidence

Contractor cases are won or lost on documentation. Gather everything:

• The written contract, estimate, or proposal — even a text message agreeing to a price counts
• Proof of payment — cancelled checks, bank transfers, Venmo/Zelle receipts
• Photos of the unfinished or defective work — date-stamped, clear, in colour
• A written repair estimate from another licensed contractor showing what it will cost to fix or complete the job
• Communication records — texts, emails, voicemails showing the contractor's non-response or excuses

Make three complete, identical sets of everything. The magistrate gets one, the defendant gets one, and you keep one for reference during the hearing.

Filing and Fees

File SCAO Form DC 84 in the district court where the work was performed (usually where your home is located) or where the contractor's business is based. The filing fee for claims between $1,750.01 and $7,000 is $70 ($65 base plus $5 electronic filing fee). For claims under $600, the total fee drops to $30.

In the "reasons" section of the form, keep it factual: "Defendant was paid $3,500 deposit on [date] to install kitchen cabinets per attached written estimate. Defendant performed no work. I am requesting return of the $3,500 deposit."

At the Hearing

The magistrate or judge will swear everyone in, then ask you to explain your claim. Walk through the timeline: when you hired the contractor, what was agreed, what you paid, what happened (or didn't happen), and what it will cost to make things right.

If the contractor shows up and claims the work was completed or that you owe them money, they can file a counterclaim up to $7,000. If their counterclaim exceeds $7,000, the entire case gets transferred to the General Civil Division where lawyers are allowed and formal evidence rules apply.

Most contractor-deposit cases are straightforward for the magistrate: you have a contract, proof of payment, and either no work or a competing estimate showing the work was defective. The clearer your documentation, the faster the hearing goes.

For a complete walkthrough of every step — from demand letter templates to service tracking and hearing-day preparation — the Michigan Small Claims Filing Guide covers the full process with printable worksheets.

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