Counterclaim
Also called: Defendant's claim, Part 20 claim
A claim made by a defendant against the claimant within the same proceedings, asserting that the claimant owes the defendant money or some other remedy.
Definition
A counterclaim allows a defendant who has a claim against the claimant to bring it in the same proceedings, rather than starting separate litigation. Under CPR Part 20, a defendant can file a counterclaim as of right before or at the same time as filing their defence; with the court's permission after that. The counterclaim is heard alongside the main claim, and the court can set off one against the other. For example, if a claimant sues for £5,000 of unpaid fees, and the defendant counterclaims that the work was defective causing £3,000 of loss, the court might award the claimant only £2,000 net. Counterclaims are subject to the same limitation periods as primary claims — a defendant cannot counterclaim on a cause of action that has become statute-barred. Unlike a set-off (which is purely a defence reducing the claimant's recovery), a counterclaim can exceed the value of the original claim and result in a net judgment in the defendant's favour. A defendant who fails to bring a counterclaim when they could have done may be prevented from raising it in separate proceedings by the rule in <em>Henderson v Henderson</em>.
In practice
If you are defending a claim and you have your own grievance against the claimant, always consider a counterclaim — it avoids separate proceedings and the court will assess both at once. Include your counterclaim in your defence document, headed "Counterclaim" after your defence. State the factual basis, the legal basis (breach of contract, negligence, etc.), and the amount or remedy you seek. In small claims, counterclaims are common and do not require a solicitor. See the <a href="/guides/debt/county-court-money-claim" class="body-link">county court money claim guide</a> for the procedure.