The Defendant Counter-Sued You. What to Do Now.
You sued someone for $2,000. Then a letter arrives saying they are suing you back for $3,500, and suddenly you are the defendant too. Take a breath. A counterclaim is not a second lawsuit, and it is not a sign your case is lost. In most states your first move is to do nothing at all.
What to do when the defendant counter-sues you
A counterclaim is the defendant's way of saying the dispute runs both ways: you claim they owe you, they claim you owe them, and the judge will decide both in one hearing. That is the whole mechanism. The case stays in the same court on the same hearing date, and a counterclaim is not a sign the judge believes them. It means you now have two things to prepare for instead of one.
In most states you are not required to file a written answer to the counterclaim. Your original complaint already states your position, and the court treats the hearing date as the place where both claims get aired. Nevada's self-help center puts it bluntly: do nothing, settle, or file a motion to dismiss. Those are the three real options. Doing nothing means showing up ready to defend. Settling folds both claims into one negotiation, which is where most of these end up. The third option is a motion to dismiss: argue the counterclaim has a legal defect, like the statute of limitations already ran, or the court has no jurisdiction over you, or the defendant is asking for something small claims court cannot grant, like the return of a car. Simply disagreeing with their version is not a legal defect and will not get it thrown out.
The deadlines hiding inside the counterclaim
While most states need no written response, the strict ones punish silence. In Arkansas, once a counterclaim is served, the plaintiff has 30 days to answer or risk a default judgment for whatever the defendant asked for. That is the one trap in this whole process: assuming everywhere works like the lenient states. When the counterclaim arrives, read your court's instructions that day, not the week before the hearing.
The defendant has deadlines too, and they protect you. In California the countersuit is filed on form SC-120, an individual can countersue up to $12,500 and a business up to $6,250, and the defendant must serve it on you at least 5 days before trial when they were served at least 10 days out. A counterclaim that lands on your doorstep the night before the hearing may not be heard at all. Know the filing rules on both sides and you will spot a late one immediately.
Why counterclaims are usually bargaining chips
Here is my honest read after watching how these play out: most counterclaims are filed for leverage, not because the defendant expects to win $3,500. Filing one costs the defendant a second filing fee, and defendants do not pay that for fun. The counterclaim says, in effect, drop your claim and I will drop mine. That is a negotiation opener, and recognizing it as one changes how you respond.
So treat it seriously and strategically. Prepare a defense the way you prepared your offense: receipts, photos, the contract, the timeline. But do not let the counterclaim scare you into abandoning a claim you would have won. Judges see retaliatory counterclaims constantly, and a thin one filed the week after your complaint does not impress them. The person who walks in organized on both claims is the person the judge believes.
Frequently Asked Questions
Do I have to file a written response to a counterclaim?
In most states, no. You have already filed your complaint, so the court has your side. You show up on the hearing date ready to defend against the counterclaim. Some states are stricter, so check your local rules.
What is the minimum I have to do about a counterclaim?
Show up prepared, with evidence for your original claim and a defense against theirs. If you do nothing else, do that. Ignoring the counterclaim is the one option that can cost you a default judgment in strict states.
How much can the defendant countersue for?
Yes, up to the court's dollar limit, the same limit that applied to your claim. In California, individuals can countersue for up to $12,500 and businesses up to $6,250.
Can I get the counterclaim thrown out?
Sometimes. A motion to dismiss works when the counterclaim has a legal defect, like being filed too late or asking for something small claims court cannot grant. Disagreeing with the claim is not a legal defect.
Know the Fees on Both Sides
Counterclaims carry their own filing fees by state. See what the other side paid and what your options cost.
Look Up Court Fees