The final arguments in Sanders' case were heard by the Michigan Judicial Tenure Commission on February 9, 2015. On July 1, the Michigan Supreme Court determined that Sanders be removed from the bench. The order stated, "We accept the determination that the respondent suffers from a mental disability that prevents the performance of her judicial duties." Sanders responded to the decision via the Detroit News, saying, "The ruling is fraudulent and unfounded. I plan to pursue legal remedies with the Department of Justice and the United States Equal Employment Opportunity Commission. The electoral mandate of the people of the city of Detroit has been nullified by the racist regime of the Michigan Supreme Court.” The formal complaint against Sanders and the Judicial Tenure Commission's decision and recommendation for discipline can be found here. The case summary of the Michigan Supreme Court case can be found here.

On December 8, 2014, Sanders' disciplinary hearing commenced in the 3rd Circuit Court and was presided over by Judge Michael Sapala. The following day, Sanders announced through her attorney her plans to retire from the bench immediately. In January 2015, Judge Sapala declared Sanders to be mentally unfit. "Sadly, the evidence clearly proves that (Sanders) is psychotic and clearly seriously mentally ill," stated Sapala. Additionally, "[h]er mental disorders render her unfit to sit as a judge. Her illness prevents her from being able to properly perform judicial duties."