Counterclaim
A claim brought back by a defendant against the plaintiff within the same proceeding.
What a counterclaim is
A counterclaim is a claim made by a defendant against the plaintiff in the same proceeding. Instead of only defending, the defendant asserts their own claim — for example, that the plaintiff in fact owes them money, or caused them loss. The court can then deal with both the original claim and the counterclaim together.
A counterclaim is distinct from a simple denial of liability, because it seeks something positive in the defendant's favour. The way counterclaims are made depends on the court and the rules in the jurisdiction.
In debt matters
In a debt dispute, a defendant might counterclaim by alleging defective goods or services, or a separate amount owed to them. This can affect the net result if both claims succeed in part. Because a counterclaim adds complexity, creditors often assess the risk of one before deciding to litigate, and may prefer to explore settlement.
This is general information only and is not legal advice. The rules for counterclaims vary between jurisdictions — seek advice on your particular matter.
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