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LSDefine
Simple English definitions for legal terms
compulsory counterclaim
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A quick definition of compulsory counterclaim:
A compulsory counterclaim is when someone who is being sued makes a claim against the person who is suing them. This claim has to be about the same thing that the person who is suing them is talking about. If the person being sued doesn't make this claim, they can't make it later. There are some exceptions, like if they can't add another person to the lawsuit or if they forgot to make the claim. This is different from a permissive counterclaim, which is a claim that someone can make even if they don't make it right away.
A more thorough explanation:
A compulsory counterclaim is a type of legal claim that a defendant can make against a plaintiff in a lawsuit. This claim must arise from the same transaction or occurrence as the plaintiff's claim. If the defendant fails to raise this claim in the same lawsuit, they forfeit their right to bring it up in the future.
For example, if a plaintiff sues a defendant for breach of contract, the defendant may have a compulsory counterclaim for breach of the same contract. If the defendant fails to raise this counterclaim in their answer, they cannot bring it up in a future lawsuit.
Compulsory counterclaims are governed by Federal Rule of Civil Procedure 13(a). However, there are some exceptions to this rule. If the counterclaim requires adding a party over whom the court cannot obtain jurisdiction, it does not need to be raised. Additionally, if the defendant fails to raise the counterclaim due to oversight, inadvertence, or excusable neglect, they may be able to set up the counterclaim by amendment.
Compulsory counterclaims are different from permissive counterclaims, which are claims that a defendant can make against a plaintiff but are not forfeited if they fail to raise them in their answer.