A torque transfer mechanism having a multi-plate friction clutch connecting a pair of rotary members and an electrohydraulic clutch system for controlling engagement of the friction clutch. The electrohydraulic clutch system can include an actuator with first and second components with a plurality of actuation chambers that are employed to control the position of the second component relative to the first component. Relatively high pressure fluid may be directed through or around one or more bypassed portions of the actuation chambers when relatively low compressive clutch engagement forces are to be exerted on the friction clutch. The bypassed portions of the actuation chambers may be sequentially or progressively operated based on a position of the second component relative to the first component to increase an amount of force that is applied by actuator.