How to File a Counterclaim in Small Claims Court in Newfoundland and Labrador

When a Counterclaim Makes Sense

You've been sued in Newfoundland and Labrador's Provincial Court, Small Claims Division — but the plaintiff actually owes you money from the same situation. A contractor sued you for unpaid work, but they left your kitchen half-finished. A buyer is claiming a refund on a vehicle you sold, but they still owe you the balance.

Under Rule 6 of the Small Claims Rules, you can file a counterclaim as part of your Reply (Form 2). This turns the case into a two-way dispute that the court resolves at the same hearing, rather than forcing you to start a separate lawsuit.

The Counterclaim Is Part of Form 2

In NL Small Claims Court, the counterclaim isn't a separate document. It's a section within Form 2 — the same Reply form you use to respond to the original claim. When you fill out Form 2, you'll see a dedicated Counterclaim section where you state what the plaintiff owes you and why.

This is different from some other provinces where the counterclaim is a standalone filing. In Newfoundland and Labrador, one form handles your defence and your counterclaim together.

Filing Requirements and Fees

Filing fee: Your counterclaim is subject to the same fee schedule as a Statement of Claim — $50 if the amount is under $500, or $100 for amounts between $500 and $25,000. Filing the Reply portion itself is free, but the counterclaim section carries its own fee.

Where to file: The same registry that issued the original Statement of Claim.

How to file: In person at the registry counter, by mail with the appropriate fee, or through the Provincial Court's e-filing portal at provincial.efile.court.nl.ca.

Service: After filing, you must serve a copy of your completed Form 2 (including the counterclaim) on the plaintiff, then file a Certificate of Service (Form 4) at the registry.

The $25,000 Limit Applies to Counterclaims Too

The Provincial Court's monetary jurisdiction — $25,000 — caps your counterclaim the same way it caps the original claim. If the plaintiff owes you more than $25,000, you have two choices:

1. Abandon the excess on Form 2 under Rule 6(5), reducing your counterclaim to $25,000. The abandoned amount is gone permanently — you cannot recover it in a separate lawsuit.

2. Apply to transfer the entire case to the Supreme Court of Newfoundland and Labrador (Trial Division) under section 6(1) of the Small Claims Act. This moves both the original claim and your counterclaim into a court with no monetary cap, but the process is more formal and legal costs are higher.

For most small claims defendants, abandoning a small excess to stay in Provincial Court makes more practical sense than the cost and complexity of Supreme Court litigation.

What Happens After You File a Counterclaim

Once Form 2 is filed with a counterclaim, the case proceeds on two tracks simultaneously:

1. The plaintiff's original claim against you
2. Your counterclaim against the plaintiff

Both are dealt with at the same settlement conference and, if necessary, the same trial. The plaintiff becomes the "defendant by counterclaim" and has the right to respond to your counterclaim in writing.

If the plaintiff doesn't respond to your counterclaim, you can apply for default judgment on it — but unlike the main claim process, default judgment on a counterclaim requires a specific judicial application under Rule 19(2)(j). It's not automatic.

At the settlement conference, the judge will explore whether both sides can reach an agreement that resolves everything. If the plaintiff owes you $3,000 and is claiming $5,000 from you, a settlement might involve a net payment of $2,000 — simpler than fighting two separate claims to judgment.

What to Write in the Counterclaim Section

Keep it factual and specific. State:

• What the plaintiff owes you (a dollar amount)
• Why they owe it (the facts — unpaid balance, property damage, incomplete work)
• How the amount connects to the same transaction or relationship the plaintiff is suing about

You don't need legal citations or formal language. The court expects brief, plain-language descriptions. But be specific enough that the plaintiff and the judge understand exactly what you're claiming and how you arrived at the amount.

If your counterclaim involves property damage or vehicle repairs, estimates or receipts can support the amount you're claiming. Serve any repair or property-value estimate on all parties at least 14 days before trial unless a judge orders otherwise. Rule 3(7) requires a plaintiff whose claim is for vehicle damage from a motor vehicle accident to attach an itemized estimate from a qualified mechanic or a receipt for completed repairs by a qualified mechanic to the Statement of Claim.

Our Responding to a Small Claim in NL guide includes a Form 2 drafting walkthrough that covers both the dispute and counterclaim sections, with practical guidance on how much detail to include and common mistakes to avoid.

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