Can the Defendant Countersue in California Small Claims Court?

You've been served with a small claims lawsuit in California, and you don't just want to defend — you believe the plaintiff actually owes you money. California small claims court lets you file a counterclaim (officially called a Defendant's Claim) so the judge hears both sides in a single hearing.

Filing Form SC-120 (Defendant's Claim)

To countersue, fill out Judicial Council Form SC-120 (Defendant's Claim and ORDER to Go to Small Claims Court). This form is structurally similar to the plaintiff's Form SC-100 — you state your claim, the amount you're demanding, and the facts behind it.

File it with the court clerk and serve a copy on the plaintiff at least 5 calendar days before the scheduled hearing date. If you were served with the plaintiff's claim 10 days or fewer before the hearing, you can serve your counterclaim as late as 1 calendar day before the trial.

The filing fee is the same as a regular small claims filing: $30 for claims up to $1,500, $50 for $1,500.01–$5,000, and $75 for $5,000.01–$12,500.

Your Counterclaim Doesn't Have to Be Related

Unlike some states, California doesn't require your counterclaim to arise from the same transaction as the plaintiff's claim. If your landlord is suing you for unpaid rent and you have a separate claim against them for a security deposit they never returned, you can file both as your Defendant's Claim.

That said, the judge will hear everything on the same day, so keeping it focused helps your presentation. Unrelated claims can confuse the narrative.

What Happens at the Hearing

The judge hears the plaintiff's claim first, then your counterclaim. Each side presents evidence and responds to the other's case. The judge rules on both claims independently — you can win your counterclaim even if the plaintiff also wins theirs.

Possible outcomes:

• The plaintiff wins their claim and your counterclaim is denied
• You win your counterclaim and the plaintiff's claim is denied
• Both claims are partially or fully granted (the amounts may offset)
• Both claims are denied

If both sides win monetary awards, the practical result is that the lower amount is subtracted from the higher, and the party with the larger judgment collects the difference.

The Claim Limit Still Applies

Your counterclaim is subject to the same jurisdictional limits: $12,500 for individuals and sole proprietors, and $6,250 for corporations, LLCs, and partnerships. If your claim exceeds the limit for your type of claimant, you can waive the excess permanently to stay in small claims court, or file a separate action in civil court (but that's a different case with different timelines and costs).

Appeal Rights Are Different for Counterclaims

California's small claims appeal rules are asymmetric. If the plaintiff loses on their own claim, they cannot appeal. But if a defendant loses on the plaintiff's claim, the defendant can appeal. For counterclaims (Form SC-120), the roles reverse: if the defendant (who filed the counterclaim) loses on it, they cannot appeal their own counterclaim. The plaintiff can appeal a judgment entered against them on the defendant's counterclaim. A defendant who missed the hearing must first move to vacate within 30 days after the clerk mails notice of the judgment; if they were not properly served and did not appear, they have 180 days after discovering or reasonably should have discovered that the judgment was entered. If the motion is denied, they have 10 days after the court mails or delivers notice of the denial to appeal.

An eligible party files an appeal using Form SC-140 (Notice of Appeal) within 30 calendar days after the clerk mails or delivers the Notice of Entry of Judgment (Form SC-130). A defendant may appeal a judgment on the plaintiff's claim; a plaintiff may appeal a judgment against them on the defendant's claim. The appeal fee is $75.

Whether you're filing a claim or defending against one, the California small claims filing guide covers the full process with printable checklists and a deadline calendar that tracks service, filing, and appeal windows.

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