Michigan Small Claims Counterclaim: How to File One as a Defendant

When Defending Isn't Enough

Sometimes the person suing you actually owes you money from the same dispute. A contractor sued you for an unpaid invoice, but their defective work cost you $2,000 to repair. A former landlord claimed $3,000 in property damage, but they never returned your security deposit. In these situations, you don't just want to dispute the claim — you want your own money back.

A counterclaim lets you file your own monetary demand against the plaintiff within the same small claims case. Both claims are heard together at the same hearing, and the judge or magistrate can offset one against the other.

The $7,000 Cap Applies to Your Counterclaim Too

Michigan's small claims ceiling under MCL 600.8401 is $7,000. Your counterclaim is subject to the same limit. If the plaintiff owes you more than $7,000 from the same transaction, you can waive the excess and counterclaim up to $7,000, or use Form DC 86 to remove the case to General Civil if your claim is within that court's jurisdiction. Under MCL 600.8423(1), you may instead file a separate action in a court with jurisdiction and, at or before the small claims trial, file an affidavit and a copy of that complaint with the small claims clerk, pay a $1 transmittal fee, and mail the plaintiff a copy. The court then transfers the small claims action to the other court, where both actions are tried together.

Waiving the excess means you cannot recover that waived portion later. Removing the entire case to General Civil court lets you pursue the full amount, but it also means formal procedures, potential attorney fees, and a longer timeline.

How to File the Counterclaim

Michigan doesn't have a single uniform counterclaim form for small claims court. The standard approach is to file a separate Form DC 84, identifying yourself as the "Counter-Plaintiff" and the original plaintiff as the "Counter-Defendant." Some courts accept a clear written statement of your counterclaim filed with the clerk instead.

Either way, submit it to the court clerk before the hearing date. The clerk will notify the original plaintiff about your counterclaim, and both claims will be scheduled for the same hearing.

Your counterclaim should be specific. State the dollar amount you're seeking, describe the transaction or dispute, and explain why the plaintiff owes you that money. "They owe me money too" won't cut it — you need facts comparable to what the plaintiff wrote in question 5 on Form DC 84.

What Happens at the Hearing

The judge or magistrate hears both claims in a single session. The plaintiff presents their case first, then you present both your defense and your counterclaim. Each side gets to respond to the other's evidence.

The court can rule in three ways: award the plaintiff their full claim and deny your counterclaim, deny the plaintiff's claim and award your counterclaim, or offset the two amounts. If the plaintiff claimed $4,000 and you counterclaimed $2,500 and the court awards both, the net judgment is $1,500 in the plaintiff's favor.

Prepare your evidence the same way you'd prepare for any hearing: three printed copies of every document (for the judge, the plaintiff, and yourself), organized chronologically. Contracts, receipts, photographs, text messages, and bank statements all qualify. 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).

Counterclaim vs. Separate Lawsuit

You could skip the counterclaim and file your own separate small claims case against the plaintiff later. But there are practical reasons not to. Two separate cases mean two hearing dates, two sets of evidence preparation, and potentially inconsistent results if different judges hear them. Filing a counterclaim in the existing case keeps everything in front of one decision-maker.

There's also a strategic element. A counterclaim signals to the plaintiff that settling might be in their interest — particularly if your counterclaim amount approaches or exceeds what they're asking for.

The Michigan Small Claims Response Guide includes step-by-step instructions for preparing and filing a counterclaim, plus a worksheet for calculating your damages and comparing them against the plaintiff's claim.

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