counterclaim
Definition
A counterclaim is when someone you sue turns around and sues you back within the same lawsuit. Instead of just defending themselves, the other party files their own legal claim against you, and both disputes get resolved together in one case.
Example
If a client sues you for $5,000 claiming you did shoddy work, you could file a counterclaim saying they actually owe you $3,000 in unpaid invoices for that same project.
Watch Out
Missing the deadline to file a counterclaim can permanently kill your right to bring that claim later, so talk to an attorney the moment you are served with a lawsuit.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.