Nunavut Small Claims Counterclaim: How to File Form 3

When someone sues you in Nunavut Small Claims Court and the same transaction left them owing you money, you don't have to file a separate lawsuit. You can counterclaim — asserting your own monetary claim against the person who sued you — using Form 3, filed alongside your Reply (Form 2).

When a Counterclaim Makes Sense

A counterclaim works when your claim arises from the same situation as theirs. A contractor sues you for an unpaid invoice, but the work was defective and you paid someone else to fix it — you counterclaim for the repair costs. A buyer sues for a refund on a vehicle, but they caused damage before returning it — you counterclaim for the damage.

If your claim is unrelated to their lawsuit (a separate transaction, a different time period), a counterclaim isn't the right vehicle. You'd file your own independent Notice of Claim instead.

Filing Requirements

File Form 3 at the same time you file your Reply (Form 2) at the Civil Registry. The counterclaim has a $75 filing fee, paid when you submit it. The Reply itself has no fee.

Your counterclaim is subject to the same $20,000 monetary ceiling as any small claims action. If your damages exceed $20,000, you can abandon the excess in writing to stay within small claims jurisdiction, or apply to transfer the matter to the general civil list of the Nunavut Court of Justice.

What Happens After You File

Once you file and serve the counterclaim, the original claimant has 30 days to file a Reply to your counterclaim. The timeline mirrors the original response process — if they miss their 30 days, you can request a default judgment on your counterclaim under Rule 12.1.

Both the original claim and your counterclaim proceed through the same mandatory mediation and, if needed, the same hearing. The judge considers both claims together and can award judgment on either or both.

Serving the Counterclaim

You must serve your counterclaim on the claimant by personal delivery or registered mail — the same service methods required for the Reply. Keep your postal receipt or personal service record for the Certificate of Service. Unlike the original Notice of Claim (which must be served by the Sheriff under Rule 9.1), respondent documents are served by the parties themselves.

Strategic Considerations

Filing a counterclaim changes the dynamics of the case. The claimant now has to defend against your claim while pursuing their own. This often makes settlement more practical for both sides, especially when the amounts are close. Under mandatory mediation, the mediator considers both claims together.

Be aware that a counterclaim also introduces cost risk. If you reject a claimant's Form 8A (Offer to Settle) and the final judgment is equal to or less favorable to you than the offer's terms, the court may order penalty costs against you.

For a complete walkthrough of the counterclaim process alongside the response workflow, our Nunavut Small Claims Response Guide covers Form 3 preparation, the filing sequence, and how the counterclaim integrates with mediation and the hearing.

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