What is a Counterclaim?

business economy

A counterclaim is a claim which is brought against a plaintiff in a lawsuit by a defendant. For example, if a landlord sued a tenant for unpaid rent, the tenant might respond with a counterclaim which suggested that the landlord was actually in the legal wrong, thereby hoping to render his or her claim invalid. Counterclaims are typically filed as part of a defendant's answer to an original claim, and there is a specific style and format for counterclaims which must be followed for the court to accept them.

Essentially, a counterclaim raises issues which a defendant would have brought up in a court case, if he or she had been given the chance to go to court first. As such, counterclaims can contain a variety of material, ranging from accusations of fraudulent activity to claims which would pre-empt any attempt at a suit. The goal of a counterclaim is to turn the tables on the plaintiff by bringing up more issues in the case and demanding redress.

In a compulsory counterclaim, the defendant must file a counterclaim or remain silent on the issue. Not all counterclaims are compulsory, and the rules vary, depending on the region and the court. As a general rule, compulsory counterclaims involve only the original parties named in the suit, and they involve only the original situation which was brought to court. So, for example, a bank could sue a customer for unpaid fees, and the customer could respond with a counterclaim which stated that the bank had used illegal tactics to recover those fees.

In a permissive counterclaim, a defendant may raise issues in a counterclaim, but if he or she doesn't, the right to sue for redress at a future point remains. In the example above, if the defendant was planning on joining a class action lawsuit of bank customers who had been poorly treated, he or she would not be obliged to file a counterclaim, because the suit would include additional parties and the scope of the claim would be larger than the original suit.

When dealing with a lawsuit, it is a good idea to find out about the regional rules governing counterclaims, which is something a lawyer can help with. You don't want to miss out on filing a counterclaim and inadvertently waive your right to file suit in the future, and by the same token, you shouldn't feel hurried into filing a counterclaim if you can legally wait. Lawyers who specialize in such cases can give the best advice on what to do.

Related wiseGEEK articles

Category

wiseGEEK features

Subscribe to wiseGEEK


FREE: Subscribe to wiseGEEK

 
    learn more

our strict privacy policy ensures that your email address will be safe



Written by S.E. Smith


copyright © 2003 - 2009
conjecture corporation