Understanding Demand Letters in Michigan
A demand letter in Michigan is a written notice sent to the other party before filing a lawsuit. It outlines your claim, specifies the amount owed, and gives the recipient a deadline to pay or respond. While Michigan does not generally require a demand letter before filing suit, it is a critical step in the dispute resolution process because it often leads to settlement and provides valuable evidence if the case goes to court.
Michigan judges appreciate parties who attempt to resolve disputes before consuming court resources. A demand letter shows you are serious about your claim and willing to litigate if necessary.
Michigan Small Claims Court Overview
Michigan's Small Claims Division operates within the District Court system and has unique features that distinguish it from many other states:
- Monetary limit: $6,500 maximum
- Filing fees: $30 to $70, varying by claim amount and county
- Court name: District Court, Small Claims Division
- Attorneys: Not permitted to represent parties in Michigan small claims court
- Appeals: The losing party may appeal to the circuit court within 7 days for a new trial
- Jury trial: Not available in small claims
- Counterclaims: Defendants may file counterclaims
Because attorneys are not allowed in Michigan small claims court, you must present your own case. This makes preparation especially important. Your demand letter and the documentation supporting it will form the foundation of your case.
Statute of Limitations in Michigan
Michigan law sets the following deadlines for filing civil lawsuits:
- Written contracts: 6 years (MCL 600.5807(8))
- Oral contracts: 6 years (MCL 600.5807(8))
- Property damage: 3 years (MCL 600.5805(2))
- Personal injury: 3 years (MCL 600.5805(2))
- Fraud: 6 years from the date of the fraudulent act or 2 years from discovery, whichever is later (MCL 600.5813)
- Product liability: 3 years from injury (MCL 600.5805(13))
Send your demand letter promptly after a dispute arises. The statute of limitations is not paused by sending a demand letter, so do not let negotiations extend past your filing deadline.
Certified Mail Requirements in Michigan
Michigan does not require demand letters to be sent by certified mail in most situations. However, certified mail with return receipt requested is strongly recommended and is required in specific circumstances:
- Bad check claims: Under MCL 600.2952, a person who writes a bad check is liable for damages only if the payee sends a written demand by certified or registered mail. The check writer then has 30 days to pay before additional damages can be claimed.
- Landlord-tenant disputes: Under MCL 554.609, landlords must provide an itemized list of damages within 30 days of lease termination. A tenant's demand for a security deposit refund should be sent by certified mail to establish the timeline.
- Mechanic's lien notices: Michigan's Construction Lien Act requires specific notices be sent by certified mail.
Retain the certified mail receipt and the return receipt (green card) as they serve as proof of mailing and delivery in court.
Interest Rates on Judgments in Michigan
Michigan law provides for interest on civil judgments:
- Pre-judgment interest: Michigan allows pre-judgment interest for breach of contract claims at the rate specified in the contract. If no rate is specified, interest accrues at the statutory rate.
- Post-judgment interest: The Michigan Treasury Department sets the post-judgment interest rate on January 1 and July 1 each year. The rate is calculated as the Treasury bill rate plus 1%, typically ranging from 2% to 6%.
- Contractual interest: If the contract specifies an interest rate, that rate generally applies, subject to Michigan's usury limits of 7% for most transactions (MCL 438.31)
Include any applicable interest in your demand letter calculation. This demonstrates the ongoing cost to the debtor and encourages prompt resolution.
What to Include in Your Michigan Demand Letter
Essential Elements
- Your full name and contact information
- The recipient's full name and address
- A detailed factual description of the dispute with dates
- The specific dollar amount demanded, with itemized calculations
- The legal basis for your claim (breach of contract, property damage, etc.)
- Supporting evidence you possess (contracts, photographs, invoices, texts)
- A deadline of 15 to 30 days for payment or response
- A statement that you will file suit in Michigan District Court, Small Claims Division if not resolved
Michigan-Specific Considerations
- No attorney representation: Since attorneys cannot appear in Michigan small claims court, your demand letter is even more important as a tool for articulating your case clearly and completely.
- Bad check claims: Reference MCL 600.2952 and note that the check writer has 30 days after receiving your certified demand to pay before you can seek treble damages.
- Security deposit claims: Michigan landlords must return deposits within 30 days with an itemized statement of deductions (MCL 554.609). Wrongful withholding can result in liability for double the deposit amount.
- Consumer protection: Michigan's Consumer Protection Act (MCL 445.901 et seq.) covers deceptive trade practices and may provide additional remedies.
When to Escalate to Court
File in Michigan small claims court if:
- The recipient does not respond to your demand letter within your stated deadline
- The recipient denies responsibility without valid grounds
- The recipient acknowledges the debt but refuses to pay or negotiate
- The statute of limitations is approaching and you need to preserve your claim
- Your claim is $6,500 or less
For claims exceeding $6,500, you must file in District Court (up to $25,000) or Circuit Court (above $25,000). These courts allow attorney representation and follow more formal procedures.
Tips for Michigan Demand Letters
- Be concise but thorough in describing the facts and your legal basis
- Include copies of key documents with the letter but retain the originals
- Mention your willingness to negotiate or accept a payment plan
- Reference specific Michigan statutes to show you understand your rights
- Keep the tone firm but professional
- Consider using Michigan's community mediation centers for disputes that might benefit from a neutral third party