A counterclaim is a claim filed by the defendant against the plaintiff in response to being sued. If you've been sued but believe the person suing you actually owes you money or caused you harm, you can fight back by filing a counterclaim.
Example: Your landlord sues you for unpaid rent. You believe the landlord owes you money for failing to make required repairs that forced you to move out early. You file a counterclaim for the cost of your security deposit plus additional damages.
How to file a counterclaim: Most courts require you to file a counterclaim before or at the time of the hearing. Check your local court's rules — some have specific forms, and some require advance notice to the plaintiff.
Amount limits: Your counterclaim must generally stay within the small claims court's monetary limits. If your counterclaim exceeds those limits, you may need to either waive the excess or transfer the case to a higher court.
Strategic value: Counterclaims change the dynamics of a case. They force the plaintiff to defend themselves as well as pursue their own claim. Sometimes the threat of a credible counterclaim motivates plaintiffs to drop their case or negotiate a settlement.
What happens at the hearing: Both the original claim and counterclaim are heard at the same time. The judge may rule in favor of one party, both parties, or find that neither party owes anything. If the plaintiff wins $3,000 and you win a $1,500 counterclaim, the net result is the plaintiff receives $1,500.
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