New Brunswick Small Claims Court Counterclaim

Someone files a claim against you and you believe they actually owe you money — not the other way around. In New Brunswick Small Claims Court, you do not have to wait and file a separate action. A counterclaim lets you assert your own claim in the same proceeding.

How a Counterclaim Works

When you are served with a Form 1 (Claim), you have 30 days to file a Form 2 (Response / Counterclaim) with the court clerk. Form 2 serves double duty: it lets you dispute the claimant's case and, in the same document, assert your own claim against them.

A counterclaim is a claim against the original claimant brought within the same proceeding. State its basis and the amount or property you seek. Common examples:

• A contractor sues you for an unpaid invoice and you counterclaim for the cost of fixing their defective work
• A seller sues for the balance of a purchase price and you counterclaim for the defective goods they delivered
• A former business partner sues for their share and you counterclaim for money they withdrew without authorization

Filing Form 2 with a counterclaim costs $50 if the counterclaim is $3,000 or less, or $150 if it exceeds $3,000. You do not pay a separate response fee for the same Form 2.

Under Section 11 of the General Regulation (NB Reg. 2012-103), counterclaims are tried at or immediately after the main action unless the court orders otherwise.

The $20,000 Limit Applies Separately

Your counterclaim is subject to the same $20,000 jurisdictional ceiling as any other small claims action. If your counterclaim exceeds the original claim amount, the total recovery on the counterclaim is still capped at $20,000 (inclusive of pre-judgment interest, exclusive of costs).

If the original claim is for $8,000 and your counterclaim is for $15,000, both proceed in the same case. The Adjudicator may dismiss the original claim entirely and award you $15,000 on the counterclaim, or make a different award based on the evidence.

Third-Party Claims (Form 3)

A third-party claim is different from a counterclaim. You use it when someone else — not the claimant — is actually responsible for the damages being claimed against you.

For example: a homeowner sues you (the general contractor) for defective plumbing. You believe the subcontractor who did the plumbing work is the one who should pay. A third-party claim (Form 3) brings the subcontractor into the same proceeding.

The process:

1. After filing your Form 2 Response, file Form 3 (Third Party Claim) with the court clerk within 30 days after you were served with Form 1 and the blank Form 2. Filing fee: $50.
2. Serve the third party within 15 days of filing Form 3. You must serve the third party with Form 3, the original Claim, your Response, and a blank Form 4 (Third Party Response).
3. The third party has 30 days from service to file Form 4, responding to the allegations.

The 15-day service window for third-party claims is significantly shorter than the one-year window for the original claim. Mark this deadline clearly — missing it can mean the third party is never properly brought into the case.

Deadlines to Watch

If the 30th day falls on a weekend or provincial holiday, the deadline extends to the next business day.

What Happens at the Hearing

The original claim and counterclaim are generally heard together, and a third-party claim is generally heard at or immediately after the main action, unless the court orders otherwise. Each party presents evidence, cross-examines the others, and makes closing remarks. The Adjudicator decides who owes whom, how much, and whether costs are awarded.

If you win on your counterclaim and the claimant loses their original claim, the judgment is in your favour for the net amount. For example, if the claimant is awarded $3,000 on their claim but you are awarded $7,000 on your counterclaim, the net judgment is $4,000 in your favour.

Your Next Step

Whether you are filing a counterclaim, defending against one, or bringing in a third party, the deadlines are tight and the forms must be correct. The New Brunswick small claims filing guide covers the full process for both claimants and respondents, including the third-party claim procedure.

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