How to File a Counterclaim in Oregon Small Claims Court as the Defendant

When You Have a Claim Against the Plaintiff

A counterclaim turns you from pure defendant into someone asserting your own money demand. Under ORS 46.461, you can file one when your claim arises from the same transaction or occurrence that the plaintiff is suing you over.

A contractor sues you for $4,000 in unpaid work. You believe the contractor caused $2,500 in damage during the job. That is a counterclaim — same project, same set of facts.

A counterclaim does not need to be larger than the plaintiff's claim. It can be smaller, the same amount, or larger.

How to File It

For a Circuit Court case, the counterclaim goes on the same Defendant's Response form (SC-Response) you file within 30 days of service. Justice Courts may use different forms; check the court named on your papers:

1. Check the counterclaim box on the form
2. Describe your claim — what the plaintiff did or failed to do, the dollar amount, and the factual basis
3. You can also check "deny" alongside the counterclaim, which means you are both disputing the plaintiff's claim and asserting your own
4. Pay the required filing fee

The counterclaim filing fee is separate from the appearance fee. In Circuit Court, the amount depends on the counterclaim value and the applicable fee schedule. Justice Courts set separate fee schedules.

The $10,000 Cap and What Happens When You Exceed It

In a Circuit Court small-claims case, if your counterclaim is $10,000 or less, the case stays in the Small Claims Department. Both the original claim and your counterclaim are heard together by the same judge at the same hearing.

If your counterclaim exceeds $10,000, ORS 46.461 requires the entire case — the plaintiff's claim and your counterclaim — to be transferred to the regular circuit court civil docket. This triggers formal pleading rules under the Oregon Rules of Civil Procedure, and both sides can retain attorneys.

Be aware of the fee-shifting risk: under ORS 46.465(4)(b), if your over-limit counterclaim forces a transfer and you do not prevail on it, the court must award the plaintiff reasonable attorney fees incurred on the transferred claim.

Counterclaim vs. Separate Lawsuit

Filing a counterclaim within the existing case is almost always better than filing a separate small claims case against the plaintiff. The advantages:

• One hearing, one judge. Both claims are resolved together, based on the same evidence.
• No conflicting outcomes. Two separate cases heard by different judges could reach contradictory results.
• Lower total costs. One set of filing fees instead of two.

A separate lawsuit does not assert a counterclaim in the plaintiff's pending case. If you want your claim considered in that case, use the counterclaim section of the response form.

Preparing Your Counterclaim Evidence

The same evidence rules apply. Bring documentation supporting your counterclaim:

• The original agreement or contract
• Records of what you paid or what was supposed to be delivered
• Photos or inspection reports showing the damage or deficiency
• Communications (emails, texts) where the plaintiff acknowledged the problem

At the hearing, you present both your defense to the plaintiff's claim and your counterclaim evidence. The judge decides both — you could win on both, lose on both, or get a mixed result where the judgment is the net difference.

Example: Landlord-Tenant Counterclaim

A former tenant sues you for a $1,800 security deposit under ORS 90.300. You believe the tenant caused $900 in damage beyond normal wear and tear. You deny the full deposit claim and counterclaim for the $900 in damage.

The judge reviews your move-out inspection, photos, repair invoices, and the tenant's evidence. If the judge finds the deposit should have been partially returned ($1,200 of the $1,800) and your damage claim is valid for $600, the net judgment would be $600 in the tenant's favor.

For step-by-step counterclaim instructions, including the form and how to calculate the fee, see the Oregon Small Claims Response Guide.

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