If your company is incorporated outside Michigan and you’ve just been served with a lawsuit in this state, there’s a good chance your first call went to the attorney who already knows your business. However, that attorney cannot simply walk into a Michigan courtroom and start representing you. Local legal counsel who is licensed to practice in Michigan generally must be used.
When Michigan law refers to a “foreign corporation,” it doesn’t mean a company headquartered overseas. A foreign corporation is simply one incorporated under the laws of a state other than Michigan. So, if your business was formed in Delaware, Ohio, Texas, or elsewhere outside Michigan, it is generally a foreign corporation under Michigan law regardless of when litigation begins. A truly international company faces the same problem, but the core issue is identical.
If you’re involved in business litigation in a Michigan court, your out-of-state counsel needs to understand how Michigan handles attorney admission before anyone files a single document. You can also contact our business law attorneys at Head Murphy Law directly for experienced and skilled legal representation.
Why Can’t My Home State Attorney Handle My Michigan Lawsuit?
Michigan Court Rule 8.126 governs how out-of-state attorneys may appear in Michigan courts, administrative tribunals, and arbitration proceedings. The short version: they generally cannot appear without first obtaining temporary admission, commonly called pro hac vice admission, and that process requires association with a Michigan-licensed attorney who serves as local counsel. And the requirement goes beyond courtrooms. Arbitration proceedings in Michigan carry the same obligation.
This isn’t a formality that can be waived. Michigan’s rules prohibit out-of-state attorneys from representing clients in Michigan proceedings without going through the proper admission process. A Michigan attorney must file the motion for temporary admission on behalf of the out-of-state lawyer, attest to the accuracy of the application, and agree to ensure the procedural requirements are followed. The out-of-state attorney cannot do this on their own.
The right to appear pro hac vice is not automatically granted, and the process is not uniform within the different courts. Additionally, in the U.S. District Court for the Eastern District of Michigan, which covers Detroit and the surrounding region, the court does not permit pro hac vice admission. An out-of-state attorney who wants to practice in the federal court in the state must be formally admitted to that court’s bar. And any attorney who is admitted to the court’s bar but is not an active member of the State Bar of Michigan must still designate a local counsel with an office in the district, unless the court relieves the attorney of that obligation. So, even in federal court, the local counsel requirement generally doesn’t disappear.
Local Counsel can Save You Time and Money
An out-of-state or out-of-country attorney appearing pro hac vice in Michigan cannot simply take over the lawsuit. Once a Michigan case is underway, local counsel plays a practical role that goes well beyond the paperwork.
Judges in Wayne County Circuit Court, Oakland County Circuit Court, and the Eastern District of Michigan each have their own preferences, standing orders, and courtroom expectations. Michigan-specific procedural deadlines and filing requirements can also trip up an experienced litigator who simply isn’t accustomed to how Michigan courts operate. Local counsel will have institutional familiarity that helps comply with local judicial expectations. Local counsel can also handle routine appearances, so your home state attorney isn’t flying in from out of state for every status conference or scheduling hearing.
What Happens If a Local Lawyer Is Not Hired?
If an out-of-state business tries to handle a Michigan lawsuit on their own, without local counsel, the result can be devastating. Our law firm helped a client from another state who came to us after a $100,000 default judgment had already been entered against his business and him individually. Our business litigation attorneys were able to get that default judgment set aside and ultimately have the case dismissed. While we can’t promise the same result for every client, we do promise to fight for the most favorable result for your company.
The cost of engaging local counsel from the start is a fraction of what it takes to unwind a default, and that’s before you factor in the stress and uncertainty of having a judgment sitting on the books while you figure out next steps. Preventing the situation is cheaper than fixing the problem.
Contact Head Murphy Law Today
If your business has been served a summons, received a demand letter, or have reason to believe a lawsuit is pending against you in Michigan, contact us directly or have your hometown lawyer contact us. We work as local counsel throughout southeast Michigan, including the Detroit metro area. We know the courts, we know the procedures, and we’ve handled exactly this kind of situation before. Contact us to learn how we can help you.