November 7, 2006
  
  ADM File No. 2005-22
  ADM File No. 2006-37
  Amendment of 
  Administrative Order 
  No. 1998-1
                   
  On order of the Court, Administrative Order No. 1998-1 is amended as
  follows, effective immediately.
  
  

  
                Administrative Order 1998-1
  Reassignment of Circuit Court Actions to District Judges
                              
       In 1996 PA 374 the Legislature repealed former MCL 600.641, which
  authorized the removal of actions from circuit court to district court on the ground that
  the amount of damages sustained may be less than the jurisdictional limitation as to the
  amount in controversy applicable to the district court. In accordance with that
  legislation, we repealed former MCR 4.003, the court rule implementing that
  procedure. It appearing that some courts have been improperly using transfers of
  actions under MCR 2.227 as a substitute for the former removal procedure, and that
  some procedure for utilizing district judges to try actions filed in circuit court would
  promote the efficient administration of justice, we adopt this administrative order,
  effective immediately, to apply to actions filed after January 1, 1997. 
  
       A circuit court may not transfer an action to district court under MCR 2.227
  based on the amount in controversy unless: (1) The parties stipulate to the transfer and
  to an appropriate amendment of the complaint, see MCR 2.111(B)(2); or (2) From the
  allegations of the complaint, it appears to a legal certainty that the amount in
  controversy is not greater than the applicable jurisdictional limit of the district court.
  [Circuit courts are directed to send to the State Court Administrator copies of all
  orders transferring actions to district court under MCR 2.227 based on the amount in
  controversy.] 
  
       Circuit courts and the district courts within their geographic jurisdictions are
  strongly urged to enter into agreements, to be implemented by joint local
  administrative orders, to provide that certain actions pending in circuit court will be
  reassigned to district judges for further proceedings. An action designated for such
  reassignment shall remain pending as a circuit court action, and the circuit court shall
  request the State Court Administrator assign the district judge to the circuit court for
  the purpose of conducting proceedings. Such administrative orders may specify the
  categories of cases that are appropriate or inappropriate for such reassignment, and
  shall include a procedure for resolution of disputes between circuit and district courts
  as to whether a case was properly reassigned to a district judge. 
  
       Because this order was entered without having been considered at a public
  hearing under Administrative Order No. 1997-11, the question whether to retain or
  amend the order will be placed on the agenda for the next administrative public hearing,
  currently scheduled for September 24, 1998. 
  
  Staff comment:  This order deletes the requirement in Administrative
  Order No. 1998-1 for courts to report to the State Court Administrative Office when
  a case is transferred from circuit court to district court.  That requirement was
  originally adopted to monitor the transfer of cases from circuit court to district court,
  following the repeal of a statute authorizing the practice.  The transfer of cases under
  MCR 2.227 has been working smoothly and without incident, and no further statewide
  monitoring is necessary.
  
  The staff comment is not an authoritative construction by the Court.