7.6Parties to a Small Claims Action

A.Assignees and Third Party Beneficiaries

“A claim shall not be filed or prosecuted in the small claims division by an assignee of a claim or by a third party beneficiary under a third party beneficiary contract.” MCL 600.8407(1). Assignees are prohibited from participating in all stages of a case brought in the small claims division, including postjudgment proceedings. The Cadle Co v City of Kentwood, 285 Mich App 240, 250 (2009). Accordingly, the assignment of small claims judgments is barred by MCL 600.8407(1). The Cadle Co, 285 Mich App at 250.

B.Generally Prohibited Parties

Except as otherwise provided in Chapter 84 of the Revised Judicature Act, MCL 600.8401 et seq., MCL 600.8408(1) specifically prohibits certain parties from taking part in the “filing, prosecution, or defense of litigation in the small claims division[,]” including:

•an attorney at law, except on the attorney’s own behalf;

•a collection agency or agent or employee of a collection agency; or

•a person other than the plaintiff and defendant. MCL 600.8408(1).

The prohibition on attorney participation in small claims actions includes postjudgment enforcement proceedings in the small claims division. In re Goehring, 184 Mich App 360, 363-364 (1990). However, an attorney may file for removal of a small claims action to the district court. In re Lafayette Towers, 200 Mich App 269, 275 (1993).

C.Governmental Units as a Party

“Except as provided in [MCL 600.8424(3)] the state, a political subdivision of the state, or any other governmental agency shall not be a party to an action in the small claims division.” MCL 600.8424(2). MCL 600.8424(3) provides that “[a] county, city, village, township, or local or intermediate school district may file an action in the small claims division.” Further, “[a]n action may be filed in the small claims division against a country, city, village, township, or local or intermediate school district, but a party may not assert a claim with respect to which the county, city, village, township, or local or intermediate school district has immunity.” Id.

1.Persons Who May File a Claim on Behalf of a County, City, Village, Township, or Local Intermediate School District

“A person shall not file a claim on behalf of a county, city, village, township, or local or intermediate school district unless that person is an elected or appointed officer or an employee of the county, city, village, township, or local or intermediate school district who has knowledge of the facts surrounding the complaint and who is authorized by the governing body of the county, city, village, township, or local or intermediate school district to file the claim.” MCL 600.8407(3).

2.Persons Who May Represent a County, City, Village, Township, or Local Intermediate School District

“A county, city, village, township, or local or intermediate school district as plaintiff or defendant may be represented only by an elected or appointed officer or an employee who has direct and personal knowledge of the facts in dispute. If the officer or employee who has direct and personal knowledge of the facts in dispute is no longer an officer or employee of the plaintiff or defendant, the representation may be made by that officer’s successor or that employee’s supervisor, or by a member of the governing body of the county, city, village, township, or local or intermediate school district. In addition, a person may not represent a county, city, village, township, or local or intermediate school district in the small claims division unless authorized to appear in the case by the governing body of the county, city, village, township, or local or intermediate school district.” MCL 600.8408(3).

D.Sole Proprietorship, Partnership, or Corporation

1.Persons Who May File a Claim on Behalf of a Sole Proprietorship, Partnership, or Corporation

“A person shall not file a claim on behalf of a sole proprietorship or a partnership unless that person is the proprietor, a partner in the plaintiff partnership, or a full-time salaried employee of the plaintiff having knowledge of the facts surrounding the complaint. A person shall not file a claim on behalf of a corporation unless that person is a full-time, salaried employee having knowledge of the facts surrounding the complaint.” MCL 600.8407(3).

2.Persons Who May Represent a Sole Proprietorship, Partnership, or Corporation

“A sole proprietorship, partnership, or corporation as plaintiff or defendant may be represented by an officer or employee who has direct and personal knowledge of facts in dispute. If the officer or employee who has direct and personal knowledge of facts in dispute is no longer employed by the defendant or plaintiff or is medically unavailable, the representation may be made by that person’s supervisor, or by the sole proprietor, a partner, or an officer or a member of the board of directors of a corporation.” MCL 600.8408(2).