Counterclaim in Nova Scotia Small Claims Court

You filed a claim expecting to get your money back. Then the defendant filed a Form 2 Defence — and attached a counterclaim saying you owe them money instead. Now you are both a claimant and a defendant in the same proceeding.

Counterclaims in Nova Scotia Small Claims Court are common, especially in contractor disputes and failed transactions where both sides believe the other owes money. Here is how they work and what you need to do.

What a Counterclaim Is

A counterclaim is a separate claim the defendant brings against you within the same court file. It is filed as part of Form 2 (Defence/Counterclaim) and must be submitted within 20 days of being served with your Notice of Claim.

The defendant pays a $66.00 filing fee for a counterclaim. The counterclaim must relate to the same transaction or set of facts as your original claim.

For example: you sue a contractor for $8,000 in damages from unfinished kitchen work. The contractor counterclaims for $3,500 in unpaid labour they say you owe for the work that was completed. The adjudicator hears both claims at the same hearing.

When You Receive a Counterclaim

The defendant must serve you with a copy of the Form 2 Defence and Counterclaim, generally by registered mail or personal service. Read it carefully. The defendant's defence will explain why they believe they do not owe you what you claimed. The counterclaim portion will set out what they say you owe them, along with their reasons.

You do not need to file a formal written reply to the counterclaim unless the adjudicator orders one. Unlike the Supreme Court, Nova Scotia Small Claims Court does not generally require a "reply to counterclaim" document. You can address the counterclaim at the hearing by presenting your evidence and arguments to the adjudicator.

That said, you should prepare as thoroughly for the counterclaim as you did for your own claim. Gather every document that addresses the defendant's allegations.

Preparing Your Response

Treat the counterclaim like a claim against you. For each allegation the defendant makes:

• Pull together any contracts, receipts, text messages, or emails that contradict their version
• Organize photos or inspection reports if the dispute involves workmanship quality
• Prepare a timeline that shows what actually happened and when
• Calculate your figures and be ready to explain how you arrived at your damages

Bring three copies of everything — one for you, one for the adjudicator, and one for the other side. This three-copy approach is a practical way to organize evidence for a Nova Scotia Small Claims hearing.

What Happens at the Hearing

The adjudicator hears the original claim and counterclaim in the same hearing. Both sides present their evidence and cross-examine each other's witnesses. The adjudicator can:

• Award the full amount of your claim and dismiss the counterclaim
• Dismiss your claim and award the counterclaim
• Award partial amounts on both sides and offset them against each other
• Dismiss both claims entirely

If the adjudicator awards you $8,000 on your claim and the defendant $3,500 on their counterclaim, the net result is a judgment in your favour for $4,500.

The Preliminary Teleconference

After a counterclaim is filed, the court may schedule a preliminary teleconference before the hearing date. This is a phone call with the adjudicator and both parties to discuss the issues, explore settlement, and set ground rules for the hearing.

Use the teleconference to clarify exactly what the counterclaim is about. Sometimes the defendant's written counterclaim is vague, and the teleconference is your chance to understand exactly what they are alleging before you walk into the hearing room.

Protecting Your Position

A counterclaim does not weaken your original claim — both are decided on the evidence. The strongest preparation you can do is organize your documents so the adjudicator can follow the story clearly: a chronological binder with contracts, payments, communications, and photos, tabbed and labelled.

The Nova Scotia Small Claims Filing Guide includes a printable evidence binder index and hearing preparation checklist designed for exactly this situation — managing both your claim and a counterclaim in one organized package.

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