PEI Small Claims Counterclaim: How to File a Defence and Defendant's Claim

The 20/40-Day Clock Starts at Service

When someone serves you with a Statement of Claim in PEI's Small Claims Section, you have 20 calendar days to file a Statement of Defence (Form 9A) if served in PEI, or 40 calendar days if served outside PEI. The service day is not counted; if the last day falls on a weekend or statutory court holiday, the deadline moves to the next operating business day. Miss the deadline and the plaintiff can apply for default judgment.

The period runs from the date of service (or the date service is deemed effective under Rule 74 if you were served by an alternative method).

Filing the Statement of Defence (Form 9A)

Form 9A is available from the court registry at the Sir Louis Henry Davies Law Courts in Charlottetown or the Summerside Law Courts, and from the Courts of PEI website. Filing a Statement of Defence costs nothing — there's no court fee for the defendant to respond.

Your defence should address each specific allegation in the plaintiff's claim. For each one, state whether you:

• Admit the allegation (it's true)
• Deny the allegation (it's not true, and here's why)
• Have no knowledge of the allegation (you genuinely don't know)

Vague denials like "I deny everything" aren't effective. Judges want to see which facts are actually in dispute and which ones both sides agree on. This helps narrow the issues for the settlement conference and trial.

You also need to file a Designation of Address for Service (Form 8A) — this tells the court and the plaintiff where to send all future documents.

When You Have Your Own Claim: The Counterclaim (Form 10A)

If the plaintiff owes you money too, you may file a Defendant's Claim (Form 10A) within 20 days after filing your Statement of Defence. This is PEI's version of a counterclaim.

A counterclaim costs $50 to file — the same fee as an original Statement of Claim. The judge hears both claims together at the same trial.

Common counterclaim scenarios in PEI small claims:

• A contractor sues you for the remaining balance; you counterclaim for the cost of fixing their defective work
• A former business partner sues for their share of revenue; you counterclaim for expenses they owed
• A buyer sues for a refund on goods; you counterclaim for damage they caused to other items in the transaction

Your counterclaim must stay within the $16,000 monetary limit. If it exceeds that, you can abandon the excess to remain in Small Claims or pursue the claim in the General Section of the Supreme Court.

Crossclaims and Third-Party Claims

PEI's Small Claims Section also allows:

• Crossclaims (Form 10B): If multiple defendants are named and one defendant has a claim against another defendant, they file a crossclaim
• Third-Party Claims (Form 10C): If a defendant believes someone who isn't already in the lawsuit should share responsibility, they can bring that person into the action

Both are less common than straightforward counterclaims, but they exist under Rule 74 to keep related disputes in one proceeding.

Strategy Considerations

Filing a counterclaim changes the dynamics of a case. The plaintiff now has something to lose — they came to court expecting to collect money, and now they might leave owing you money instead. This often makes settlement more attractive to both sides.

One thing to watch: if your counterclaim is larger than the original claim and you want the full amount, consider whether the General Section is a better forum. If both the claim and counterclaim are close to $16,000, confirm with the registry whether the case can proceed in the Small Claims Section.

The PEI Small Claims Filing Guide walks through the full defence and counterclaim process, including how to structure your Form 9A response and calculate your counterclaim damages.

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