counterclaim

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Related to counterclaims: countersuit

Counterclaim

A claim by a defendant opposing the claim of the plaintiff and seeking some relief from the plaintiff for the defendant.

A counterclaim contains assertions that the defendant could have made by starting a lawsuit if the plaintiff had not already begun the action. It is governed by many of the same rules that regulate the claims made by a plaintiff except that it is a part of the answer that the defendant produces in response to the plaintiff's complaint. In general a counterclaim must contain facts sufficient to support the granting of relief to the defendant if the facts are proved to be true. These facts may refer to the same event that gave rise to the plaintiff's Cause of Action or they may refer to an entirely different claim that the defendant has against the plaintiff. Where there is more than one party on a side, a counterclaim may be made by any defendant against any plaintiff or plaintiffs.

According to the rules governing federal Civil Procedure, a defendant usually is required to make a counterclaim in an answer if the counterclaim arises from the same transaction or occurrence on which the plaintiff is suing. This is called a compulsory counterclaim because the claim must be made in response to the plaintiff's complaint and cannot be made later or in a separate lawsuit. There are also permissive counterclaims that may be made in the defendant's answer at a later time. A claim against the plaintiff that is based on an entirely different event is one kind of Permissive Counterclaim. For example, a man may sue a woman for money damages because of a minor injury and some property damage after their cars collided. Under the rules governing Pleading in most courts, the woman would be required to assert a demand for money damages for the same accident in her answer to the man's complaint or she would lose the right to sue on that claim. If the man also happens to be a neighbor who borrowed the woman's chain saw and never returned it, the woman could demand return of the saw as a counterclaim or she could wait and sue the man for that at some other time. She might decide to wait in order to sue in a different court or because she does not want to argue the different circumstances of both claims before the same jury.

A defendant usually cannot make a counter-claim if it is not possible to make the same claim by starting a lawsuit. For example, a lawsuit to collect on a claim cannot be started after the period of time allowed by a Statute of Limitations has run out. In certain situations, however, a defendant may assert an expired cause of action as a counterclaim. This procedure, allowed for reasons of fairness and justice, is called equitable recoupment. The court may reduce the plaintiff's money damages up to the amount of the defendant's counterclaim, but the defendant will not be allowed an affirmative recovery of money over and above the amount to which the plaintiff may be entitled.

Cross-references

Set-off.

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. (See: answer, cross-complaint)

counterclaim

noun action to defeat plaintiff's deeand, assertion against the plaintiff, cause against an oppossng party, cause of action in favor of defendants, claim addanced by defendant, claim for relief by defendant, claim presented by defendant, counteraction, counterapplication, countercharge, counterdeclaration, countermotion, counterpetition, counterproposal, counterreclamation, countersuit, cross-action, cross-bill, opposing suit, rejoinder, set-off
Associated concepts: compulsory counterclaim, cross-demand, equitable counnerclaim, permissive counterclaim, set-off, sham counterrlaim
See also: answer, claim, counterargument, rebut, reply, respond, retort

counterclaim

a cross-claim brought by a defendant in civil proceedings that is not a defence to the claim made by the plaintiff but that asserts an independent cause of action against him. In Scotland, it is available to a defender. See SET-OFF.
References in periodicals archive ?
Borrowers who file lender liability counterclaims typically assert fault on the part of the lender at various points in the mortgage process: during the initial extension of the credit, during the servicing of the loan, or in the foreclosure process.
Any defendant' seems broad enough to cover a counterclaim defendant," says Dan Himmelfarb, a partner at Mayer Brown.
Diamond Triumph has ten days from the court's April 22, 2004 order to respond to the counterclaim.
SCO has asked the court to "bifurcate" the case against IBM, separating the four patent counterclaims, which it said are unrelated to the crux of the case: its claim that IBM breached licensing and sublicensing agreements with SCO by donating code to Linux.
The Company believes that the defendants' counterclaims are an independent authentication, and a testament to the value of its proprietary technologies.
Most recently, one day after we sent a letter and detailed memorandum to new director Edward Kangas, the company responded by announcing that CEO Jeffrey Barbakow had agreed to forego the outrageous 2- for-1 retirement benefit which we had detailed in that memorandum (Exhibit A of the counterclaims, pages 18-20).
PITTSBURGH -- News From USW: The Association of Critical Shareholders in Germany has proposed counterclaims on agenda items three and four at the 2007 Continental AG Annual General Meeting.
District Court for the District of Maryland, Southern Division, granted summary judgment in IGEN's favor dismissing Roche's counterclaim for fraud and struck down Roche's request for punitive damages.
In Kayser-Roth, sublandlord sued for rent, and subtenant asserted various defenses and counterclaims, claiming that overlandlord interfered with the subtenant by performing construction work in the premises and making the premises untenantable by, for example, depositing debris in the washrooms, drilling holes in the ceiling, and damaging the walls.
ADVO expects that the answer and counterclaims, in a somewhat redacted format to protect non-public, competitively sensitive information regarding ADVO's business, will be available shortly and will be posted to ADVO's website.
In its ruling, the Court stated that the counterclaims violate New Jersey court rules "by reciting claims for enormous sums of money for punitive damages and 'loss of business reputation.
Osborne filed counterclaims for abuse of process, corporate waste and breach of fiduciary duty.