Sued by a Contractor in Michigan Small Claims Court: How to Respond

The Contractor Says You Owe Them — Now What

You hired a contractor to do work on your home, a dispute arose over the bill, and now you've been served with Form DC 84 in Michigan small claims court. The contractor is claiming you owe money — anywhere from a few hundred dollars to the $7,000 small claims cap — for labor, materials, or both.

This is one of the most common disputes in Michigan small claims court. The contractor's claim may be legitimate, partially valid, or completely wrong. Your job between now and the hearing is to figure out which, gather the right evidence, and show up prepared to present your side.

Evaluate the Claim Against Your Records

Pull together everything related to the project: the original contract or written estimate (if one exists), any change orders, invoices, payment records, text messages, emails, and photographs of the work.

Compare the contractor's claimed amount on Form DC 84 (question 4) against what the contract actually says. Common gaps: the contractor charged for work that wasn't in the original agreement, billed at a higher rate than quoted, included materials you supplied yourself, or invoiced for work that was never completed or was done so poorly it needed to be redone.

If there's no written contract, the dispute becomes a question of what was verbally agreed and what each side can prove. Text messages and emails become critical evidence in these cases.

The Unlicensed Contractor Angle

Michigan requires residential builders and maintenance/alteration contractors to be licensed through the Department of Licensing and Regulatory Affairs (LARA). If your contractor was unlicensed when they performed the work, their ability to collect through the courts may be limited.

Under Michigan's Builders Trust Fund Act and licensing statutes, unlicensed contractors face significant legal obstacles when trying to enforce contracts. Some courts have found that contracts with unlicensed contractors are void or unenforceable as a matter of public policy. This doesn't guarantee the court will dismiss the claim, but it's a legitimate defense worth raising at the hearing.

Check your contractor's license status through LARA's online license verification tool before the hearing. Print the search results as evidence if no license appears.

Building Your Defense

For a contractor dispute, the strongest evidence is tangible. Photographs are critical — document unfinished work, defective installations, code violations, and any damage the contractor caused.

Useful evidence for contractor disputes:

Written contract or estimate — shows the agreed scope and price. If the contractor exceeded the scope or charged more than the estimate without written approval, that's your defense.

Photographs with dates — take photos of the work now if you haven't already, but also look for photos from during the project. Timestamped photos from your phone's camera roll show the progression (or lack thereof) of the work.

Independent assessments — if you hired another contractor to evaluate or fix the original work, get a written quote or invoice showing the cost of repairs. This can also support a counterclaim.

Payment records — bank statements, canceled checks, Venmo/Zelle records showing what you've already paid. If the contractor claims you paid nothing and your bank records show $3,000 in transfers, that's decisive.

Communication records — text messages where the contractor acknowledged problems, agreed to come back and fix issues, or changed the agreed price.

Print three copies of everything: one for the judge, one for the contractor, one for your own reference. Organize documents chronologically with clear labels.

Consider a Counterclaim

If the contractor's defective work cost you money to repair, you can file a counterclaim within the same case. The same $7,000 cap applies. You'll need documentation of your repair costs — a quote or invoice from the contractor you hired to fix the work, receipts for materials, or a written estimate from a licensed builder.

Both the original claim and your counterclaim are heard at the same hearing. The judge can offset the amounts — if the contractor is owed $3,000 but your repair costs were $2,000, the net judgment would be $1,000 in the contractor's favor.

The Michigan Small Claims Response Guide includes a dispute-specific evidence checklist for contractor cases and a framework for calculating and documenting counterclaim damages.

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