How to File a Counterclaim in Arkansas Small Claims Court

When You Can File a Counterclaim

A counterclaim lets you sue the plaintiff back within the same case. In Arkansas small claims court, you can file one when the plaintiff owes you money from the same transaction or incident that sparked their lawsuit — a contractor who did shoddy work on your house and is now billing you for the rest, a former tenant who damaged your property while you're being sued for an unreturned security deposit.

Under Arkansas Rule of Civil Procedure 13(a), counterclaims arising from the same transaction are compulsory. That means you must include them in your answer or lose the right to bring them later in a separate case.

The $5,000 Cap and What Happens If You Exceed It

Arkansas small claims handles claims up to $5,000. If your counterclaim is $5,000 or less, the judge hears it alongside the plaintiff's original claim at the same hearing.

If your counterclaim exceeds $5,000, the Small Claims Division loses jurisdiction over the entire case. The judge transfers everything — the plaintiff's claim and your counterclaim — to the Civil Division of District Court (for totals up to $25,000) or to Circuit Court (above $25,000). In the Civil Division, full procedural rules apply and attorneys are allowed on both sides.

You can also choose to reduce your counterclaim to $5,000 to keep the case in small claims. That means you forfeit the excess, but you avoid the complexity and potential attorney fees of a higher court.

How to Add the Counterclaim to Your Answer

Your counterclaim goes directly on the answer form under the "Affirmative Relief" section, or you can attach a separate page. Include:

• What happened — describe the transaction or incident, using dates and specifics
• What the plaintiff did wrong — breached a contract, failed to perform, damaged your property
• How much you're owed — a dollar figure up to $5,000 (or state the higher amount if you want a transfer)
• Supporting documents — reference contracts, receipts, photos, or messages you'll bring to the hearing

File the completed answer-with-counterclaim with the District Court Clerk within the 30-day answer deadline (60 days if you are incarcerated) and mail a copy to the plaintiff. The Certificate of Service at the bottom of the form covers both your answer and the counterclaim.

At the Hearing

The judge hears the plaintiff's case first, then yours. For the counterclaim, the burden of proof shifts to you — you'll need to show by a preponderance of evidence that the plaintiff owes you money. Bring three copies of every document: one for the judge, one for the plaintiff, and one for yourself.

If the judge rules in your favor on the counterclaim and against the plaintiff on their original claim, the plaintiff may end up owing you money. If both sides win partially, the judge typically offsets the amounts.

For the full process of responding to a small claims lawsuit and adding a counterclaim, the Arkansas Small Claims Response Guide covers everything from the answer form to hearing strategy.

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