Kentucky Small Claims Counter-Claim is a legal action taken in the state of Kentucky when a defendant believes they are entitled to compensation from the plaintiff for damages incurred as a result of the plaintiff's lawsuit. The counter-claim is filed in response to the original small claims complaint, and is used to dispute the plaintiff's claim for damages. The counter-claim must be filed within the same court and jurisdiction as the original claim, and must be accompanied by a filing fee. There are two types of Kentucky Small Claims Counter-Claim: Compensatory Counter-Claims and Declaratory Counter-Claims. Compensatory Counter-Claims are used to seek financial compensation from the plaintiff for damages incurred as a result of the initial lawsuit, while Declaratory Counter-Claims are used to challenge the validity of the plaintiff's claim.