VocabuLaw

Counterclaim

What is it and what does it mean?

Description of the legal term Counterclaim:

A counterclaim in English law is a claim made by a defendant in response to the claimant’s original claim in a lawsuit. Essentially, it’s a legal action brought against the plaintiff alleging that the defendant has a grievance that should be addressed by the court. A counterclaim is usually based on the same transaction or event as the original claim and is included in the same lawsuit.

The purpose of a counterclaim is for the defendant to seek relief or damages from the plaintiff, essentially turning the tables and making the defendant a plaintiff in the same lawsuit. The counterclaim must be legally sufficient and is subject to the same legal test as the original claim.

Legal context in which the term Counterclaim may be used:

Example 1: Commercial contract dispute
Suppose a company, ABC Ltd, sues another company, XYZ Corp, for breach of contract, alleging that XYZ Corp failed to deliver goods as agreed. In its defence, XYZ Corporation not only denies the allegations, but also files a counterclaim against ABC Ltd. The counterclaim alleges that ABC Ltd failed to make the required payments under the contract, resulting in XYZ Corp.’s inability to deliver the goods. XYZ Corp. is seeking damages for the financial loss it has suffered as a result of the non-payment.

Example 2: Property dispute
In a property dispute, a homeowner sues his neighbour for property damage caused by a tree that fell from the neighbour’s yard. The neighbour files a counterclaim alleging that the homeowner illegally cut the tree’s roots, which contributed to its fall, and seeks compensation for the value of the tree and the cost of removal. The counterclaim argues that the homeowner shares responsibility for the incident.

In both examples, the counterclaim serves as a means for the defendant to assert its own legal claims against the claimant. This process allows related disputes to be dealt with efficiently in a single legal proceeding, rather than requiring several separate lawsuits. The introduction of a counterclaim can significantly change the dynamics of litigation, as both parties are now able to defend and pursue a claim.

This website is for informational purposes only and may contain inaccuracies. It should not be used as a substitute for professional legal advice.