Sec. 4. (a) The exceptions provided in this section to formal practice and procedure apply to all cases on the small claims docket. (b) A defendant is considered to have complied with the statute and rule requiring the filing of an answer upon entering an appearance personally or by attorney. The appearance constitutes a general denial and preserves all defenses and compulsory counterclaims, which may then be presented at the trial of the case. (c) If, at the trial of the case, the court determines: (1) that the complaint is so vague or ambiguous that the defendant was unable to determine the nature of the plaintiff's claim; or (2) that the plaintiff is surprised by a defense or compulsory counterclaim raised by the defendant that the plaintiff could not reasonably have anticipated; the court shall grant a continuance. (d) The trial shall be conducted informally, with the objective of dispensing speedy justice between the parties according to the rules of substantive law. The trial is not bound by the statutes or rules governing practice, procedure, pleadings, or evidence except for provisions relating to privileged communications and offers of compromise.
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