South Carolina Small Claims Court Counterclaim

You filed a claim against someone in South Carolina magistrate court. Now they have filed a counterclaim against you. Suddenly you are both plaintiff and defendant in the same case. Counterclaims are common in small claims disputes — particularly in contractor disagreements and landlord-tenant cases where both sides believe the other owes money.

How Counterclaims Work in Magistrate Court

When a defendant files a written answer within the 30-day response window, they can include a counterclaim asserting their own monetary claims against you. The magistrate hears both the original claim and the counterclaim together at the same trial. Each side presents evidence for their claim and defends against the other.

The defendant does not need to pay a separate filing fee for a counterclaim that stays within magistrate jurisdiction. They attach it to their written answer and serve a copy on you, just as you served the original complaint.

The $7,500 Jurisdictional Trigger

Here is where counterclaims can change the entire case. Magistrate courts only have jurisdiction over claims of $7,500 or less under S.C. Code § 22-3-10.

If the counterclaim is $7,500 or less, the case stays in magistrate court. The magistrate hears both sides and can award money to either party, offset the amounts, or dismiss one or both claims.

If the counterclaim exceeds $7,500 and the defendant does not voluntarily waive the excess, the magistrate loses subject-matter jurisdiction over the entire action. Under S.C. Code § 22-3-30 and Rule 9(b) SCRMC, the magistrate must transfer both your original claim and the counterclaim to the Court of Common Pleas. That means Circuit Court — a more formal proceeding with higher costs and more complex procedural rules.

What to Do When You Receive a Counterclaim

First, read it carefully. The counterclaim will specify the amount and the basis for the defendant's claim against you. Then:

1. Check the amount. If the counterclaim is $7,500 or less, prepare to defend against it at the same magistrate trial where you present your own case.
2. If it exceeds $7,500, be aware the case may be transferred to Common Pleas. This is sometimes a tactical move by defendants who prefer a more formal court or want to discourage plaintiffs from pursuing smaller claims.
3. Gather your defense evidence. You now need to prove your original claim and disprove the counterclaim. Organize receipts, contracts, photographs, and witnesses for both sides of the dispute.

Claim-Splitting and Counterclaim Strategy

A defendant cannot split a single claim that exceeds $7,500 into separate smaller lawsuits to keep everything in magistrate court, just as a plaintiff cannot do the same. But a defendant holding a counterclaim over $7,500 does have the option to waive the excess and keep the case at the magistrate level — accepting a maximum recovery of $7,500 in exchange for the simpler, faster proceeding.

If you are filing a claim and anticipate a counterclaim, our South Carolina Small Claims Filing Guide covers how to prepare your evidence to address both your claim and a potential counter.

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