Michigan

A Michigan Corporation Can Be Represented in Court Only by an Attorney

For reasons that remain unknown to me, many people try to represent themselves in court. I certainly understand that good legal representation can be expensive, but I still believe that the final cost of a layperson representing themselves in court is usually far more than the expense of hiring a good lawyer to protect their interest.

While Michigan courts can allow individuals to represent themselves, corporations must be represented by a lawyer in Michigan district and circuit courts (but not in small claims courts). This rule stems from a 1938 Michigan Supreme Court case in which the Court dealt with a turf battle between trust companies and the Detroit Bar Association. The Detroit Bar Association argued that trust companies -- which were corporations -- were engaged in the unauthorized practice of law when they drafted probate papers and wills and participated in probate court proceedings. The Michigan Supreme ruled that while the trust companies could draft probate papers, they could not appear in court without being represented by a lawyer because of the very fact that they were corporations (and not real, natural persons who could truly represent themselves).

Another reason behind this rule is a practical one: It is thought that a person who is not an attorney is more likely than an attorney to burden other litigants and the court with time-consuming, meritless arguments and with time-consuming delays attributable to noncompliance with procedural requirements.

Every state that I know of follows the same rule as Michigan when it comes to representation of corporations in court. But, courts in several states have recognized an exception to this rule where a sole shareholder seeks to represent the corporation. These courts have reasoned that an individual has the right to represent a personal cause in court, and a sole shareholder representing the corporation is only representing such a cause. It is unclear whether this exception to the general rule would apply in Michigan, although it has been cited in a dissenting opinion by a Michigan Supreme Court justice.

Some states have extended the prohibition against self-representation from corporations to limited liability companies (LLC's). For example, a New York court recently ruled that an LLC needs to be represented by an attorney in court. At this point in time, it appears that there is no Michigan law specifically on this point. Regardless, I always advise businesses of whatever form to use a lawyer if they have to be in court. If you think I'm saying this out of my own self interest, think again. Lawyers make a lot of money fixing messes that could have been avoided if people would have just gone to a good lawyer when first confronted with a legal issue in the first place.

Full post as published by Michigan Business Lawyer Blog on November 28, 2007 (boomark / email).