How to File a Counterclaim in NWT Small Claims Court

What a Counterclaim Is

A counterclaim lets you sue the plaintiff back as part of the same case. Instead of filing a separate lawsuit, you include your claim in the bottom section of Form 2 (Statement of Defence). This saves time and avoids a second filing fee for a separate action.

You can only counterclaim against the person who sued you, and the counterclaim must arise from the same dispute or transaction. If a contractor sues you for an unpaid invoice and you believe their work was defective, your counterclaim for repair costs goes right into Form 2.

How to Include a Counterclaim in Form 2

The counterclaim section sits at the bottom of Form 2. You complete two parts:

"WHAT HAPPENED?" — Describe the facts supporting your claim against the plaintiff. Keep it concise and factual. If a contractor sued you for $5,000 in unpaid work but left your kitchen cabinets improperly installed, explain what happened, when it happened, and what damage resulted.

"HOW MUCH?" — Break down the dollar amounts you are claiming, just like the plaintiff did in Form 1. List each category of loss separately (repair costs, replacement materials, lost rental income, etc.).

The $35,000 Ceiling

The Territorial Court's jurisdiction caps at $35,000, excluding interest and costs. This ceiling applies to your counterclaim too. If your damages exceed $35,000, you have two options:

1. Abandon the excess. Write on Form 2: "I choose to abandon the excess over $35,000." The case stays in Territorial Court, but you cannot recover the abandoned amount in any future proceeding.

2. Apply to transfer. File Form 40 (Application to Judge) to move the entire action — the original claim and your counterclaim — to the Supreme Court of the Northwest Territories. This opens up the full amount but brings longer timelines, stricter procedural rules, and higher costs.

For most defendants, abandoning a small excess is the practical choice. Transferring to Supreme Court makes sense only when the amount above $35,000 is substantial enough to justify the added complexity.

Filing Fees

Filing a Form 2 that only disputes the claim or proposes payment terms is free. Adding a counterclaim triggers a filing fee, payable when you submit Form 2 to the court registry. If you cannot afford the fee, you can ask the registry about a fee waiver or remission for financial hardship.

What Happens After You File

Once the registry accepts your Form 2 with the counterclaim, staff serve a copy on the plaintiff. The plaintiff then has a deadline to file Form 7 (Statement of Defence to Counterclaim). Under the rules, a plaintiff responding to a counterclaim cannot file a further counterclaim back against you — the chain stops at Form 7.

After both sides have filed, the registry schedules the mandatory judicial mediation session, where both the original claim and your counterclaim are on the table for settlement.

When a Counterclaim Makes Sense

Counterclaim when you have a legitimate financial claim arising from the same dispute and you can back it up with documents — invoices, photos, contracts, messages. Do not counterclaim just to pressure the plaintiff or complicate the case. Judges see through tactical filings, and a weak counterclaim can undermine the credibility of your defence.

The NWT small claims response guide covers counterclaim drafting in detail, with a worksheet for calculating your claim amounts and structuring the Form 2 counterclaim section.

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