Counterclaim Meaning: A counterclaim refers to a legal plea made by a defendant in response to a claim made against them by the opposing party in a lawsuit. It is a proactive defense strategy that allows the defendant to present their own claims against the plaintiff. The counterclaim asserts that the plaintiff is also responsible for the issue at hand or has caused harm to the defendant in some way. Example: In a personal injury lawsuit, if a driver sues another driver for damages resulting from a car accident, the sued driver can file a counterclaim alleging that the initial driver's negligence caused the accident, and they should compensate for the damages caused to their own vehicle. Types of Counterclaims: 1. Compulsory Counterclaim: A compulsory counterclaim arises from the same transaction or occurrence as the original claim, and it must be raised in the same lawsuit. Failure to include a compulsory counterclaim can lead to a waiver of the right to bring it up in a separate lawsuit. Example: In a divorce case, if one party files for divorce and requests spousal support, the other party can file a compulsory counterclaim seeking property division, which is related to the same marital dissolution. 2. Permissive Counterclaim: A permissive counterclaim, unlike a compulsory counterclaim, does not arise from the same transaction or occurrence as the original claim. It is not required to be raised in the same lawsuit, but it can be added if it helps resolve all the issues between the parties involved. Example: In a product liability lawsuit where a consumer sues a manufacturer for injuries caused by a defective product, the manufacturer can file a permissive counterclaim against the consumer for failing to follow the product's instructions properly. 3. Counterclaim as Defense: Some jurisdictions consider the counterclaim as a defense rather than a separate claim. In this situation, the defendant includes their counterclaims within their defense arguments, rather than filing them as a distinct claim. Example: In a landlord-tenant dispute, if the tenant fails to pay rent, the landlord can raise a counterclaim as part of their defense argument, seeking reimbursement for unpaid rent and damages caused by the tenant. In summary, a counterclaim is a legal plea made by a defendant against the plaintiff in response to a claim made against them. It allows the defendant to present their own claims and assert that the plaintiff shares responsibility or is liable for damages. Counterclaims can be categorized as compulsory, permissive, or considered as part of the defense strategy in certain jurisdictions.