How to Respond to a Montana Small Claims Case When the Plaintiff Owes You Money
The Short Answer
If someone filed a small claims complaint against you in Montana but they actually owe you money from the same transaction, you have the right to file a counterclaim for up to $6,500. The counterclaim is heard at the same hearing as the original complaint, and the Justice of the Peace can award you money even though you were the one who got sued. The catch: you must serve the counterclaim on the plaintiff at least 72 hours before the hearing, and the deadline is absolute.
When a Counterclaim Makes Sense
A counterclaim is not a general "they owe me money" filing — it must arise from the same transaction or occurrence as the plaintiff's original complaint. Common scenarios in Montana small claims:
Security deposit disputes: Your former landlord sues you for $2,000 in property damage. You have move-in photographs showing the damage was pre-existing, and the landlord did not provide the written list of rent due and damage or cleaning charges required under MCA § 70-25-202 within 30 days after the earlier of tenancy termination or surrender and acceptance of the premises. You counterclaim for the amount wrongfully withheld from your deposit.
Contractor disputes: A contractor sues you for $4,500 in unpaid work. The work was incomplete — the bathroom tile was cracked, the paint was the wrong color, and the contractor stopped returning calls after you asked for corrections. You counterclaim for the cost of hiring someone else to finish and fix the job.
Vehicle sale disputes: A buyer sues you for $3,000 claiming undisclosed mechanical problems in a private vehicle sale. You sold the car as-is with a written bill of sale, and the buyer still owes you $1,200 from the agreed price that they promised to pay in installments.
Customer refunds: A customer sues your small business for a $500 refund on a completed service. The customer damaged equipment you provided during the service, and the repair cost exceeds what they are claiming.
In each case, the counterclaim is connected to the same facts the plaintiff raised. The court decides both claims at the same hearing.
The 72-Hour Rule
Montana's counterclaim deadline is one of the tightest in the country. Under the small claims procedure, your completed counterclaim form must be served on the plaintiff at least 72 hours before the scheduled hearing time. Not 72 hours before the hearing date — 72 hours before the hearing time.
If your hearing is at 10:00 AM on a Thursday, the plaintiff must have the counterclaim in hand by 10:00 AM the previous Monday.
Service must be made in the same manner as the Order of Court/Notice to Defendant — through the sheriff or a process server. You cannot hand the counterclaim to the plaintiff yourself and count that as service.
The 72-hour rule means that the counterclaim decision cannot wait until the last week. From the day you are served with the original complaint, the timeline looks like this:
- Identify that you have a viable counterclaim (same transaction, the plaintiff owes you money)
- Get the official Small Claims Counterclaim form from courts.mt.gov
- Complete the form with the amount (up to $6,500), the facts, and the transaction that connects it to the original claim
- Arrange service through a sheriff's deputy or process server
- Confirm service is complete at least 72 hours before the hearing
Miss the 72-hour window and the court cannot hear the counterclaim at the hearing. You would need to file a separate small claims case as the plaintiff — a new filing, a new hearing date, and a new fee.
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The $6,500 Cap
The plaintiff's claim can be up to $7,000 (the Montana small claims maximum). Your counterclaim is capped at $6,500. These limits are separate — the court can award the plaintiff up to their claimed amount and you up to your counterclaimed amount, and the Justice of the Peace nets the two if both succeed.
If your counterclaim exceeds $6,500, the small claims court can consider it only to decide whether it discharges the plaintiff's claim; you must pursue any balance in an appropriate Justice Court or District Court action (MCA § 25-35-606(2)). Separately, the defendant may remove the case to Justice Court within 10 days after service of the complaint and order, which allows a jury trial and attorney representation under the general civil rules (MCA § 25-35-605).
Preparing Evidence for Both Sides
At the hearing, the Justice of the Peace hears the plaintiff's case first, then yours. You need evidence for both:
Defending against their claim: Documents that show you do not owe what they are claiming, or that the amount is wrong. Contracts, invoices, receipts, photographs, text message printouts, written estimates, and bank statements that contradict the plaintiff's version.
Supporting your counterclaim: Documents that show the plaintiff owes you money from the same transaction. The security deposit receipt and the missing itemized statement. The second contractor's invoice for finishing the work. The bill of sale with the unpaid installment. Whatever proves the amount and the connection to the original dispute.
Three copies of everything — one for the judge, one for the plaintiff, one for yourself. Organized chronologically, tabbed, and labeled. The Justice of the Peace will review both sets of evidence before ruling.
The Montana small claims response guide includes a counterclaim service log that tracks the form filing, the 72-hour cutoff, process-server attempts, and return of service, alongside an evidence ledger for organizing exhibits for both the defense and the counterclaim.
What Happens at the Hearing
The plaintiff presents their case first — their complaint, their evidence, their version of events. You can ask questions after they finish. Then you present your defense and your counterclaim with your evidence. The plaintiff gets to respond to your counterclaim.
The Justice of the Peace can rule four ways:
- Plaintiff wins their claim, your counterclaim is denied — you owe the full amount
- Your counterclaim wins, plaintiff's claim is denied — they owe you
- Both succeed — the court nets the amounts and one side pays the difference
- Both are denied — nobody owes anything
The judgment is entered at the end of the hearing or mailed shortly after. Either party can appeal to District Court within 10 days, but only on questions of law — not to re-argue the facts.
Who This Is For
- Montana defendants who were sued in small claims but believe the plaintiff owes them money from the same transaction
- Tenants counterclaiming for a wrongfully withheld security deposit
- Homeowners counterclaiming for the cost of fixing incomplete or defective contractor work
- Anyone served with a small claims complaint who has a legitimate offsetting claim up to $6,500
Who This Is NOT For
- Defendants whose claim against the plaintiff involves a different, unrelated transaction (file a separate small claims case instead)
- Counterclaims exceeding $6,500 where you are not willing to waive the excess (consider removal to general civil court)
- Debt-collection defendants — contact MLSA at 1-800-666-6899 for free legal assistance
Frequently Asked Questions
Can I counterclaim for more than the plaintiff is asking for?
Yes, up to $6,500. The counterclaim amount is independent of the plaintiff's claimed amount. If they sued you for $1,500 and you counterclaim for $4,000, the court can award you the full $4,000 if the evidence supports it.
What if I miss the 72-hour deadline?
The court will not hear the counterclaim at the hearing. Your options are to file a separate small claims case as the plaintiff (new filing fee, new hearing date, new service), or to raise the issue informally at the hearing — some Justices of the Peace will note it on the record, but they cannot adjudicate an unserved counterclaim.
Do I still need to show up if I file a counterclaim?
Absolutely. Filing a counterclaim does not replace appearing at the hearing. If you fail to appear, the court enters a default judgment on the plaintiff's claim and your counterclaim is dismissed. Both sides must be present for the court to decide both claims.
Can the plaintiff increase their claim after seeing my counterclaim?
The plaintiff's small claims demand is limited to $7,000. The 10-day Notice of Removal is a defendant's option, and the deadline runs from service of the complaint and order, not from service of a counterclaim (MCA § 25-35-605). If your counterclaim exceeds $6,500, the small claims court can consider it only to decide whether it discharges the plaintiff's claim; you must pursue any balance in an appropriate Justice Court or District Court action (MCA § 25-35-606(2)).
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