Legal Question in Construction Law in Michigan

unlicensed residential builders allowed to arbitrate or sue in circuit court?

Are unlicensed residential builders allowed to sue in the oakland county circuit courts? are they allowed to file for binding arbitration with the american arbitration association? are they allowed to file a construction lein? They do not have a residential builders license. They do not have a salespersons license. They are not a michigan based corporation. They are not licensed to do business in michigan. They are an Illinois based corporation who was involuntarily dissolved from the state of Illinois for not filing their annual reports and not paying licenses.


Asked on 2/17/05, 1:09 pm

1 Answer from Attorneys
Patrick Tracy Patrick J. Tracy, Esq, P.E.,

Re: unlicensed residential builders allowed to arbitrate or sue in circuit court

The ability of a corporation to sue in court depends on the proper formation of the corporation. You said that it was an Illinois Corporation which sounds as though it did not file for a license to do business in the state of Michigan. However, if it is not a corporation, then it is an individual suing you in state court. The question is whether he has enough contacts with the state of Michigan to sue in their courts. If not, then he can sue in Federal Court as long as the case or conterversy exceeds the statutory claim limit which I believe is 75, 000 (It may be higher now).

In summary he may be able to sue you in state court depending on facts and circumstances. Arbitration is a private way to resolve disputes, which in many cases can be upheld and enforced by state courts.

Good Luck!!

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Answered on 2/17/05, 1:16 pm


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