Michigan House Bill HB5784

Michigan 2023-2024 Regular Session

• Introduced: 6/5/24
• Refer: 6/5/24

Caption

Civil procedure: evictions; limited liability companies; allow members to represent in certain situations. Amends 1961 PA 236 (MCL 600.101 - 600.9947) by adding sec. 5707.

Impact

The introduction of HB 5784 is poised to significantly impact the procedural landscape for limited liability companies within the state. By allowing certain members to act on behalf of their LLCs in summary proceedings, the bill aims to streamline legal processes, potentially reducing both costs and time associated with hiring external legal representation. This provision could simplify court proceedings for small, closely-held businesses, making it easier for them to navigate legal challenges without the need for attorney representation, thus improving access to justice for smaller enterprises.

Summary

House Bill 5784 seeks to amend the Revised Judicature Act of 1961 by introducing a new section that governs the representation of limited liability companies (LLCs) in summary proceedings. This bill specifically addresses situations where an LLC may allow one of its members to represent it in these legal contexts. The conditions under which this representation is permitted are quite specific: an LLC with one member or an LLC with two members who are married can allow a member to represent them, provided a verified statement is filed with the court authorizing this representation. This limits representation to members who have direct and personal knowledge of the facts involved in the case, thereby ensuring that only those who are well-informed can participate on behalf of the company.

Contention

While the bill has clear benefits for LLCs, it may raise concerns regarding the qualifications and knowledge of individuals representing these companies in legal matters. Critics may argue that allowing untrained individuals to represent the company could lead to procedural issues or undermine the integrity of legal processes. There are also potential concerns regarding conflicts of interest, particularly with the provision for married couples, especially if there are ongoing personal legal matters like divorce proceedings. This aspect could create complications in ensuring fair representation and maintaining the distinction between personal and business interests.