Legal Question in Civil Litigation in Michigan
Dispute resolution
The contract with our customer states that any disputes will be resolved by small claims court or binding arbitration (AAA). Claim is $4,200 and AAA costs would be 25% or more of the claim. If we file a District Court case (because costs would be less) and the defendant states it should have been arbitrated, who would have to pay the arbitration fees?
Asked on 3/05/07, 3:21 pm
1 Answer from Attorneys
William Morrison
Action Defense Center
Re: Dispute resolution
The small claims court, which is a division of the District Court, has a jurisdiction (maximum award) of $3000. If the word "or" is in the contract, you needn't go to arbitration.
Answered on 3/05/07, 4:08 pm
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