BC Small Claims Counterclaim: How to File One and What to Expect

What Is a Counterclaim?

A counterclaim is the defendant's own monetary claim against the claimant, filed as part of the same small claims case. Instead of just defending — "I don't owe you that money" — you attack: "Actually, you owe me money."

In BC Provincial Court small claims, a defendant can file a counterclaim against the claimant with their Reply (Form 2). Both the original claim and the counterclaim are heard together at the same settlement conference and trial.

When a Counterclaim Makes Sense

Counterclaims work when the defendant has a genuine monetary claim against the claimant:

Contractor vs. homeowner. The homeowner sues for a refund of a $15,000 deposit because the contractor abandoned the job. The contractor counterclaims for $8,000 in unpaid invoices for work actually completed before the relationship broke down.

Business dispute. Company A sues Company B for $12,000 in unpaid invoices. Company B counterclaims for $6,000 in damages from defective goods that Company A delivered.

Property damage. A neighbour sues you for $7,000 in fence damage from your tree. You counterclaim for $5,500 because their landscaper damaged your driveway while working on their side of the property line.

A counterclaim does not have to arise from the same transaction or event. For example, a defendant can include a separate debt claim against the claimant in the Reply, subject to the $35,000 limit.

How to File a Counterclaim

File your counterclaim as part of your Reply (Form 2). The Reply form has a section where you set out your defence and a section where you can set out a counterclaim. In the counterclaim section:

• State the facts supporting your claim against the claimant.
• Specify the dollar amount you are claiming.
• Attach any supporting documents (invoices, contracts, photographs).

The filing fee for a counterclaim is $100 for a counterclaim up to and including $3,000, or $156 for a counterclaim over $3,000, under Schedule A.

You must serve your Reply (including the counterclaim) on the claimant. After being served, the claimant has 14 days to file a Reply to Counterclaim setting out their defence to your claim.

What Happens at Trial

Both claims are heard together. The claimant presents their case first, then the defendant presents their defence and their counterclaim evidence. The claimant then responds to the counterclaim.

The judge decides both claims. The outcomes are independent — you might win your counterclaim even if the claimant also wins their original claim. In that case, the judge may offset the amounts:

• Claimant wins $15,000 on the original claim.
• Defendant wins $8,000 on the counterclaim.
• Net judgment: $7,000 in the claimant's favour.

Or the judge might dismiss the original claim entirely and award the full counterclaim to the defendant.

Counterclaim vs. Third-Party Notice

A counterclaim is your claim against the person who sued you. A Third-Party Notice (Form 3 / SCL 003) is something different — it brings a new party into the lawsuit who you say is responsible for all or part of the claimant's loss.

Example: A homeowner sues your renovation company for defective tiling. You filed a third-party notice against the tile supplier, arguing the defect was in the tiles, not your workmanship. The supplier becomes a party to the case and can be ordered to pay if the judge agrees.

Third-party notices are procedurally more complex — the new party must be served, gets their own Reply deadline, and the case may need to be rescheduled to accommodate the additional party. But they protect you from being the only target when someone else shares responsibility.

Strategic Considerations

A counterclaim raises the stakes. Filing one signals to the claimant that defending this case will not be a one-sided affair. Some claimants become more willing to settle when they realize they might end up owing money instead of collecting it.

Document your counterclaim as carefully as the original claim. Just because you are the defendant does not mean the burden is lighter on your counterclaim. You carry the same burden of proof — balance of probabilities — and need the same quality of evidence: contracts, invoices, photos, correspondence.

The monetary limit applies. Your counterclaim cannot exceed $35,000 in Provincial Court small claims. If your counterclaim exceeds that amount, you may need to abandon the excess or file separately in Supreme Court.

For a complete guide to every step of BC Provincial Court small claims — filing, serving, counterclaims, and trial preparation — see our BC Provincial Court small claims guide.

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