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Counterclaim: Definition and Meaning

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Quick Answer

A counterclaim is a claim that a defendant brings against the plaintiff in the same lawsuit, usually in the answer, asking the court to award the defendant its own relief rather than only defending. In US federal court, a counterclaim arising from the same transaction or occurrence as the plaintiff's claim is generally compulsory: if it is not raised, it is usually barred in a later suit.

What a counterclaim is, when you must bring one, and how it differs from a cross-claim, setoff and affirmative defense.

Disclaimer: This glossary is for informational purposes only and should not be considered legal advice. For specific legal guidance, consult with a qualified attorney.

Last updated 28 October 2026

What counterclaim means in plain English

When someone sues you, you can do more than deny the allegations. A counterclaim lets the defendant sue the plaintiff back inside the same case. For that claim the defendant becomes the counterclaimant (or counter-plaintiff) and the plaintiff becomes the counter-defendant, and the court decides both sides' claims together.

A counterclaim is not limited to reducing what the plaintiff wins. Under Federal Rule of Civil Procedure 13(c), a counterclaim may ask for relief that exceeds in amount or differs in kind from what the plaintiff seeks. A defendant sued for $20,000 can counterclaim for $150,000, or for an injunction.

Compulsory vs permissive counterclaims

TypeRuleWhat it coversIf you leave it out
CompulsoryFRCP 13(a)A claim against an opposing party that arises out of the same transaction or occurrence as the opposing party's claim. Exceptions include a claim already pending in another action, or one that needs a party the court cannot get jurisdiction over.Generally barred from being brought later in a separate lawsuit
PermissiveFRCP 13(b)Any other claim against an opposing party, even an unrelated oneCan usually be brought later in its own lawsuit; in federal court it may need its own basis for subject-matter jurisdiction

State courts have their own rules. Many follow the federal approach, but not all treat the same claims as compulsory, so check the rules of the court where the case is pending.

Counterclaim vs cross-claim vs affirmative defense

TermAgainst whomWhat it does
CounterclaimAn opposing party, usually the plaintiffSeeks the defendant's own recovery, such as damages or an injunction
Cross-claim (FRCP 13(g))A co-party on the same side, for example one defendant against anotherSeeks relief from a co-party concerning the transaction or occurrence underlying the original action or a counterclaim, or property at issue in the original action; it may include contribution or indemnity
Affirmative defense (FRCP 8(c))The plaintiff's claimDefeats or reduces the plaintiff's claim (for example statute of limitations, release, waiver) but does not by itself award the defendant anything
Setoff or recoupmentThe plaintiffReduces what the defendant owes by an amount the plaintiff owes the defendant; may be pleaded as a defense or a counterclaim depending on the court

Labels are not fatal: under FRCP 8(c)(2), if a party mistakenly calls a defense a counterclaim (or the reverse), the court can treat it as if it had been correctly designated.

How and when a counterclaim is filed

  • A counterclaim is normally included in the answer. The ordinary federal answer period is 21 days from service of the summons and complaint. With a timely waiver of service, it is 60 days from when the waiver request was sent, or 90 days when the request was sent to a defendant outside any US judicial district (FRCP 12(a)(1)(A)). Special rules or court orders can change these periods.
  • Serving a Rule 12 motion, such as a motion to dismiss, generally changes the deadline. Unless the court orders otherwise, the answer is then due 14 days after notice that the motion was denied or postponed until trial, or after service of an ordered more definite statement (FRCP 12(a)(4)).
  • The plaintiff must answer the counterclaim, in federal court within 21 days after being served with it (FRCP 12(a)(1)(B)).
  • A counterclaim must meet the same pleading standard as a complaint: enough facts to state a plausible claim and a demand for relief.

Counterclaim example

A software vendor sues a customer for $60,000 in unpaid subscription fees. The customer answers, denies owing the full amount, pleads prior material breach as a defense, and counterclaims for $95,000, alleging the platform repeatedly missed the uptime commitment in the same agreement. Because the counterclaim arises from the same contract, it would be compulsory in federal court: if the customer left it out, a later suit over the outages would likely be barred.

A counterclaim in that case might open like this:

COUNTERCLAIM. Defendant and Counterclaimant [Customer] ("Customer"), for its Counterclaim against Plaintiff and Counter-Defendant [Vendor] ("Vendor"), alleges as follows: ... COUNT I (Breach of Contract). Vendor breached Section 6.2 of the Subscription Agreement by failing to meet the 99.9% monthly uptime commitment in at least five months of the term, causing Customer the damages described below.

Why counterclaims matter when you draft contracts

Contract terms shape counterclaims long before any lawsuit. An arbitration or forum-selection clause can decide where a counterclaim must be heard, a contractual limitation period can shorten the time to bring it, and a settlement agreement or mutual release should say expressly whether it releases both the claims and the counterclaims in a pending case.

How LexDraft helps

If a dispute settles, LexDraft can draft a mutual release in Microsoft Word from a plain-English description, for example one that releases the claims and counterclaims in a named case, and explain any clause in plain English in the Word sidebar. Start from the free mutual release template. Pleadings and court filings should be prepared or reviewed by a lawyer admitted in that court.

Related terms

Frequently Asked Questions

What is the definition of a counterclaim?

A counterclaim is a claim a defendant files against the plaintiff in the same lawsuit, asking the court to award the defendant its own relief, such as damages. It is usually included in the answer to the complaint.

What is a compulsory counterclaim?

Under Federal Rule of Civil Procedure 13(a), a counterclaim is compulsory if it arises out of the same transaction or occurrence as the opposing party's claim, subject to limited exceptions. A compulsory counterclaim that is not raised is generally barred in a later lawsuit. State rules can differ.

What is the difference between a counterclaim and a cross-claim?

A counterclaim is brought against an opposing party, usually by the defendant against the plaintiff. A cross-claim is brought against a co-party. In federal court, it must concern the transaction or occurrence underlying the original action or a counterclaim, or property at issue in the original action (FRCP 13(g)).

Is a counterclaim the same as a defense?

No. A defense argues that the plaintiff should lose or recover less. A counterclaim asks the court to award the defendant something, and it can succeed even if the plaintiff's claim also succeeds.

How long do you have to file a counterclaim?

Usually with the answer: ordinarily 21 days after service in US federal court, or 60 days from when a timely waiver request was sent (90 days for a request sent outside any US judicial district). Rule 12 motions, special rules and court orders can change the deadline. State deadlines vary.

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