Vermont Small Claims Counterclaim: How to File One and What It Costs

When the Defendant Has a Claim Too

Sometimes both sides owe each other money. A contractor sues a homeowner for an unpaid invoice, and the homeowner says the work was defective and cost them money to fix. A seller sues for the balance on a sale, and the buyer says the goods were damaged on delivery.

A counterclaim lets the defendant bring their own claim against the plaintiff within the same small claims case, rather than filing a separate lawsuit. In Vermont, counterclaims in small claims are governed by V.R.S.C.P. Rule 3(d), and they're filed as part of the defendant's Answer.

How Counterclaims Work

When you're served with a small claims complaint by mail, you have 30 days from the mailing date to file an Answer (Form 100-00126); after in-hand sheriff service, the 30 days run from the date of personal service. Within that Answer, you can include a counterclaim — your own demand for money damages against the plaintiff.

The counterclaim is capped at $10,000 under V.R.S.C.P. Rule 3(d), matching the general small claims limit. Any amount over $10,000 is waived if you file the counterclaim in small claims.

Filing Fees for Counterclaims

Counterclaims aren't free. The defendant pays a fee when filing the Answer with a counterclaim:

• $25 for counterclaims of $500 or less
• $35 for counterclaims over $500

These fees are set by 32 V.S.A. § 1431(c)(1). Pay when you file your Answer — the clerk won't process the counterclaim without the fee.

When to File a Counterclaim vs. a Separate Case

Filing a counterclaim makes sense when your claim is directly related to the same transaction the plaintiff is suing over. The judge hears both sides of the dispute at once, which is more efficient and avoids inconsistent rulings.

Consider a separate filing if:

• Your claim is unrelated to the plaintiff's lawsuit
• Your claim exceeds $10,000 and you don't want to waive the excess
• You need time to gather evidence that won't be ready within the 30-day Answer window

If you don't file a counterclaim and later try to bring a separate case over the same transaction, the plaintiff could argue res judicata — that the matter should have been raised in the original case. It's safer to bring related claims together.

What Happens at the Hearing

The judge hears both the original claim and the counterclaim at the same hearing. The plaintiff presents first, then the defendant presents their defense and their counterclaim evidence. The judge can rule in favor of either party — or both partially.

If the plaintiff wins $3,000 on their claim and the defendant wins $1,200 on the counterclaim, the judge may issue a net judgment of $1,800 in the plaintiff's favor. The specifics depend on the facts and the judge's approach.

Preparing Your Counterclaim

Treat the counterclaim like its own case. You need evidence supporting your claim — contracts, invoices, photos, communications, repair estimates — just as the plaintiff needs evidence for theirs. The 30-day Answer deadline means you should start gathering documentation as soon as you're served.

For WebEx hearings, submit your counterclaim exhibits to the court and the plaintiff at least five days before the hearing date, alongside any exhibits defending against the plaintiff's original claim.

The Full Filing Process

The Vermont Small Claims Filing Guide covers both plaintiff and defendant procedures, including how counterclaims interact with service deadlines and hearing preparation. It walks through the forms, fees, and evidence organization for claims on both sides of a dispute.

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