Define: Counterclaim

Counterclaim
Counterclaim
Quick Summary of Counterclaim

A counterclaim is a legal action initiated by a defendant in response to a plaintiff’s claim in a lawsuit. It asserts a claim against the plaintiff that arises out of the same transaction or occurrence that is the subject of the plaintiff’s original claim. In other words, it’s a claim made by the defendant against the plaintiff within the same lawsuit. Counterclaims are commonly filed in civil litigation and allow defendants to assert their own rights, defences, or claims for relief against the plaintiff. The court will typically address both the plaintiff’s claim and the defendant’s counterclaim in the same proceeding, aiming to resolve all related issues efficiently.

What is the dictionary definition of Counterclaim?
Dictionary Definition of Counterclaim
  1. A suit filed by a defendant against a plaintiff secondary to the original complaint.
  2. To file a counterclaim.

n. a retaliatory claim by a defendant against a plaintiff in a lawsuit included in the defendant’s answer and intending to off-set and/or reduce the amount of the plaintiff’s original claim against the defendant. For example, Hotdog Products sues Barbecue Bill’s Eatery for $40,000 for meat delivered to Bill’s but not paid for, and Bill counterclaims that Hotdog owes him $20,000 for a load of bad chicken livers, so Hotdog is only entitled to $20,000. In many states the counterclaim is no longer allowed, in which case a cross-complaint, which is a separate complaint, must be filed by the defendant, but as part of the same lawsuit. On the other hand, in federal cases, if the defendant believes he/she/it has a legitimate counterclaim to reduce damages it must be alleged (stated) in the answer or it is barred from being considered.

Full Definition Of Counterclaim

A counterclaim is a legal claim made by a defendant in response to a claim made against them by a plaintiff. It is a separate claim that the defendant asserts against the plaintiff, and it must be related to the same transaction or occurrence that is the subject of the plaintiff’s claim. The purpose of a counterclaim is to allow the defendant to seek relief from the plaintiff for any harm or damages that the plaintiff may have caused them. The counterclaim is typically filed as part of the defendant’s answer to the plaintiff’s complaint.

A defendant’s court papers that seek to reverse the thrust of the lawsuit by claiming that it was the plaintiff — not the defendant — who committed legal wrongs, and that as a result, it is the defendant who is entitled to money damages or other relief. Usually filed as part of the defendant’s answer — which also denies plaintiff’s claims — a counterclaim is commonly but not always based on the same events that form the basis of the plaintiff’s complaint. For example, a defendant in an auto accident lawsuit might file a counterclaim alleging that it was really the plaintiff who caused the accident. In some US states, the counterclaim has been replaced by a similar legal pleading called a cross-complaint. In other states and in federal court, where counterclaims are still used, a defendant must file any counterclaim that stems from the same events covered by the plaintiff’s complaint or forever lose the right to do so. In still other states where counterclaims are used, they are not mandatory, meaning a defendant is free to raise a claim that it was really the plaintiff who was at fault either in a counterclaim or later as part of a separate lawsuit.

Counterclaim FAQ'S

A counterclaim is a legal claim made by the defendant in response to the plaintiff’s original claim. It allows the defendant to assert their own rights and seek relief from the court.

A counterclaim can be filed when the defendant believes they have a valid legal claim against the plaintiff arising out of the same transaction or occurrence as the plaintiff’s claim.

The purpose of filing a counterclaim is to allow the defendant to assert their own legal rights and seek a remedy or damages from the plaintiff. It helps to resolve all related legal issues in a single lawsuit.

No, filing a counterclaim is not mandatory. It is a strategic decision made by the defendant based on their assessment of the case and their desire to assert their own legal rights.

Yes, a counterclaim can be filed in any type of lawsuit, including civil, criminal, and administrative cases. It is a common practice in civil litigation to address all relevant legal issues in a single proceeding.

The procedure for filing a counterclaim varies depending on the jurisdiction and court rules. Generally, it involves drafting and filing a separate document with the court, serving it on the plaintiff, and following the prescribed timeline for response.

Yes, a counterclaim can be settled or negotiated separately from the original claim. Parties can engage in settlement discussions or alternative dispute resolution methods to resolve both the plaintiff’s claim and the defendant’s counterclaim.

No, a counterclaim cannot be raised in an appeal. Appeals are limited to reviewing the decisions made by the trial court, and counterclaims are typically resolved at the trial level.

Yes, a counterclaim can be raised in a small claims court. Small claims courts provide a simplified process for resolving disputes, and counterclaims are allowed to ensure all relevant legal issues are addressed in a single proceeding.

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Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 6th April 2024.

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