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tain to any business in the company. Not doing so will make the directors liable for any profit or gain.

3.7 CIVIL LAW

•In a civil trial the claims of wrong doing are made by the plaintiff, and are made against the defendant(s).

•Civil court decisions are based on an onus of proof, and a balance of probabilities.

•The civil court structure for the U.S. is pictured below,

•The civil court structure for Michigan is pictured below,

Supreme Court of USA

Supreme Court of Michigan

(Court of Appeal)

Supreme Court of Michigan

Divisional Court

Supreme Court of Michigan

High Court of Justice

Surrogate Court

District Court

Provincial Court (Civil Division)

“Small Claims Court”

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• The basic sequence of events for civil cases is shown in the chart below,

cause of action

		originating process					initial special proceedings
		service
		appearance

				Pleadings
disposition of the											disposition of the
action without trial				Plaintiff			Defendant				action without trial
(no judicial decision)											(judicial decision)
				Statement of			Statement of
				claim and/or			defence and/or
				reply			counter claim

discovery

setting down for trial

trial

judgement

notice of appeal

appeal decision

enforcement