House Bill 4463: Proposed Law Would Allow LLC’s to Pursue Landlord/Tenant Evictions without an Attorney
On March 30, 2017, Representatives VanSingel, Lucido, Sheppard, Webber, Howrylak and
Calley proposed House Bill 4463, which would amend MCL 600.101, et seq. by including a new section 5707. Under current Michigan law, a limited liability company (“LLC”) is required to be represented by an attorney for any landlord/tenant matters. The proposed law would allow single member LLCs (or two member LLCs if the two members are married) to handle evictions without requiring an attorney under certain circumstances.
First, the amount in dispute could not exceed the limit for small claims matters [currently $5,500]. Thus, if the damages exceeded $5,500 then an attorney would still be required. Second, the LLC may only be represented by a member, a property manager or other agent with direct and personal knowledge of the facts in the complaint.
This bill does not apply if there are two non-married members or in a circumstance where there are three or more members in a LLC. While this proposed legislation does not prevent a LLC from hiring an attorney, if desired, it gives greater flexibility to landlords to save on attorney fees for routine eviction matters. Moreover, it may increase the number of landlords who operate under a LLC.
This bill has been referred to the Committee on Law and Justice. Our team will be monitoring this proposed legislation.
Joe Wloszek is an attorney with the law firm of Cummings, McClorey, Davis & Acho, P.L.C. where he focuses his practice on dispute avoidance, condominium law, commercial litigation, commercial real estate, large contractual disputes, and title litigation. He has extensive litigation and trial experience in state and federal courts involving commercial litigation issues and real estate matters. He can be reached at (734) 261-2400 or firstname.lastname@example.org.