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in a small claims case the court allowed the defendant counsel to appear by phone without prior notice and the defendants counsel was an attorney (not allowed in small claims).
When you objected to the defendant being represented by counsel, what did the judge say?


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I'm confident this is a violation of civil rights and basic due process.
It's neither of those things.


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I've done the research and found the relevant statues and case law
You found a case that says a Michigan small claims court allowing a party to appear through counsel is a violation of civil rights and/or due process? Please cite that case for us so that we may all have the benefit of reading it.


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1) If filing Pro Se - is it better to use the simplified forms, or file a standard legal pleading?
Filing what? You're not suggesting that you think you have a basis to sue someone (whom?) for this, are you?


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2) Ideally, I'd have a lawyer to help with this but the ~5 that I've spoken with don't want to take it because theres not enough money in it. Any ideas where I can find a good one?
If you're asking an attorney to represent you on contingency, then he/she will need to be convinced that the amount you are likely to recover (multiplied by his/her contingent fee percentage) will make it worthwhile for him/her to spend however many hours on the case. For example, if an attorney thinks your case is worth $100,000 and he/she will get 1/3 of that and wants to realize $300 per hour worked, then it would be worth the attorney's time to spend 111.11 hours on the case. However, if your case is only worth $1,000, then that same attorney wouldn't be willing to spend more than 1.11 hours on the case.

How much do you think your case is worth, and what damages did you suffer as a result? If your answer is that you lost the small claims case, then your recourse is to appeal, not file a new lawsuit.