Simple English definitions for legal terms
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The transaction-or-occurrence test is a way to determine if a claim is a compulsory counterclaim under the Federal Rules of Civil Procedure. There are four different tests that can be used to determine this:
If the answer to any of these questions is yes, then the claim is likely a compulsory counterclaim. This means that it must be brought in the same lawsuit as the original claim, or it may be barred from being brought in a later lawsuit.
The transaction-or-occurrence test is a method used to determine if a claim is a compulsory counterclaim under Fed. R. Civ. P. 13(a). There are four different tests that can be used:
For example, if a person sues their landlord for breach of contract, and the landlord files a counterclaim for unpaid rent, the transaction-or-occurrence test would be used to determine if the counterclaim is compulsory. If the legal and factual issues raised by the breach of contract claim and the unpaid rent counterclaim are largely the same, then the counterclaim would likely be compulsory.