- If you are sued and the plaintiff owes you as well, you can file a Defendant’s Claim (a counterclaim) within the same proceeding.
- A Defendant’s Claim is usually filed with, or shortly after, your Defence — generally within 20 days — and has its own filing fee.
- You can counterclaim for up to the $50,000 limit, even if that is more than the plaintiff is claiming against you.
- A Defendant’s Claim can also be brought against a third party who should share responsibility, not just the plaintiff.
- Both claims are generally heard together, and the amounts can be set off against each other in the final result.
- Countersuing is a real remedy, but it should be genuine — a weak counterclaim filed for leverage can backfire.
The Short Answer
If you are sued in Ontario Small Claims Court and the plaintiff actually owes you — or someone else should share the blame — you do not have to only defend. You can file a Defendant’s Claim (a counterclaim) within the same case, generally with or shortly after your Defence, for up to the $50,000 limit. Both claims are usually heard together, and the amounts can be set off against each other in the final result. Used genuinely, it turns a one-sided lawsuit into a two-way reckoning.
What a Defendant’s Claim Is
In Small Claims Court, the person who starts the case files a Plaintiff’s Claim. If you are the defendant and you have your own claim, you file a Defendant’s Claim — the court’s version of a counterclaim. It lets you pursue money or a remedy against the plaintiff, or against a third party, all within the same proceeding rather than starting a separate lawsuit. It is the mechanism that makes “countersuing” possible.
These are two different documents. A Defence answers the plaintiff’s claim; a Defendant’s Claim advances your own. If both apply to you, you generally file both — defending the claim against you while pursuing your own.
When You Can Countersue
A Defendant’s Claim makes sense when, for example:
- The plaintiff owes you money arising from the same dispute (for instance, a contract where each side blames the other)
- The plaintiff owes you for a separate matter you want resolved efficiently
- A third party — not the plaintiff — should be responsible, in whole or in part
The key is that the counterclaim should be a genuine claim, not just a bargaining chip. A real counterclaim strengthens your position; a hollow one can undermine your credibility.
The Deadline & Filing
A Defendant’s Claim is generally filed within 20 days after you file your Defence, and it is common to file the two together. It carries its own filing fee, like any claim. Filing promptly keeps your counterclaim in the same proceeding as the plaintiff’s claim; delay can complicate matters or require the court’s permission. As with the original claim, the Defendant’s Claim must then be served on the party you are claiming against.
Suing a Third Party
A Defendant’s Claim is not limited to the plaintiff. If someone else should share responsibility for what the plaintiff is claiming, you can generally bring them into the case with a Defendant’s Claim for contribution or indemnity. This avoids the inefficiency of separate lawsuits and ensures the party who should ultimately pay is part of the same proceeding.
A homeowner sues a general contractor for a defective renovation. The contractor believes the problem was caused by the subcontractor who did the specific work. Rather than paying and then suing separately, the contractor files a Defendant’s Claim against the subcontractor within the same case — so the homeowner’s claim and the contractor’s claim over responsibility are resolved together.
Set-Off: Netting the Claims
Where both sides have valid claims, the court can apply set-off — netting the amounts against each other. If the plaintiff proves you owe $8,000 and you prove they owe you $5,000, the practical outcome may be a net judgment of $3,000 in the plaintiff’s favour. Set-off is one of the most useful features of countersuing: even if you cannot defeat the plaintiff’s claim entirely, a solid Defendant’s Claim can substantially reduce — or eliminate — what you ultimately pay, and can even leave you as the net winner.
Both Claims Heard Together
Because the Plaintiff’s Claim and the Defendant’s Claim are in the same proceeding, they generally travel together through the settlement conference and, if not resolved, to trial. This is efficient — one set of dates, one judge, one hearing of the whole dispute — and it puts your claim squarely on the table during settlement discussions, which can change the negotiation entirely.
Is Countersuing Worth It?
Countersuing is powerful but not automatic. Weigh:
- Whether your claim is genuine and provable
- The filing fee and effort against what you expect to recover
- Whether the other party can actually pay a judgment
- Whether it strengthens your settlement position
A real counterclaim, backed by evidence, is often well worth filing. A tactical one filed only to pressure the plaintiff can waste money and damage your credibility with the court.
Proving Your Counterclaim
A Defendant’s Claim is a claim like any other — you carry the burden of proving it. That means gathering the same kind of evidence you would for a Plaintiff’s Claim: the contract or agreement, communications, financial records, and anything that quantifies your loss. Our guide on how to sue in Small Claims Court applies equally to a Defendant’s Claim, since you are effectively the plaintiff on that claim.
Counterclaim vs. Separate Lawsuit
You might wonder whether to file a Defendant’s Claim in the existing case or simply start your own separate lawsuit against the other party. In most situations, the Defendant’s Claim is the better choice when your claim arises from the same dispute. It keeps everything in one proceeding — one set of court dates, one settlement conference, one trial — which is faster, cheaper, and allows set-off. Running two separate cases over the same underlying facts wastes money and risks inconsistent results.
There are exceptions. If your claim is entirely unrelated, or is far larger than the Small Claims Court limit, a separate proceeding (potentially in a higher court) may make more sense. But for the common scenario — a contract or transaction where each side blames the other — folding your claim into the existing case as a Defendant’s Claim is almost always the efficient path, and it ensures the whole dispute is decided at once rather than in pieces.
Facing a Counterclaim Against You
The reverse can also happen: you sue someone, and they file a Defendant’s Claim back against you. If that happens, do not panic, but do not ignore it either. A counterclaim against you is a real claim that you must respond to with a Defence of your own, generally within the deadline, or you could face a default judgment on the counterclaim. Treat it with the same seriousness as any claim: review what is alleged, gather your evidence, and consider whether it is genuine or a tactical move. In many cases, a plaintiff facing a counterclaim finds that the settlement conference becomes the natural place to resolve both directions of the dispute at once — which is often in everyone’s interest.
What to Do If You Are Sued
- Do not ignore the claim. File your Defence within the deadline to avoid a default judgment.
- Consider whether you have your own claim against the plaintiff or a third party.
- File the Defendant’s Claim promptly — generally with or shortly after your Defence — and serve it.
- Gather evidence for your counterclaim, and get advice on whether it is worth pursuing.
Common Myths
Myth: “If I’m being sued, all I can do is defend.”
False. If the plaintiff owes you too, you can file a Defendant’s Claim and pursue them within the same case.
Myth: “A counterclaim replaces my Defence.”
False. They are separate documents. You generally file both — a Defence to the claim against you and a Defendant’s Claim for your own.
Myth: “I can only counterclaim for as much as they’re suing me for.”
False. Your Defendant’s Claim can be for up to the $50,000 limit, even if that is more than the plaintiff is claiming.
Been sued when the other side owes you too? Call our Toronto Small Claims team at 416-274-2222 for a free, confidential consultation about whether to countersue.
Frequently Asked Questions
Yes. If the person suing you owes you money related to the dispute (or otherwise), you can file a Defendant’s Claim — a counterclaim — within the same case. It lets you pursue your own claim rather than only defending, and both are generally decided together.
A Defendant’s Claim is the Small Claims Court document a defendant uses to make their own claim — against the plaintiff, or against another person who should share responsibility. It functions like a counterclaim and is heard alongside the original Plaintiff’s Claim.
A Defendant’s Claim is generally filed within 20 days after filing your Defence, often at the same time. Filing promptly keeps everything in one proceeding; waiting too long can complicate matters or require the court’s permission.
Yes. Your Defendant’s Claim can be for up to the $50,000 Small Claims Court limit, even if that exceeds what the plaintiff is claiming against you. The two claims are separate amounts that are considered together.
Yes. If someone other than the plaintiff should share responsibility for the plaintiff’s claim, you can generally bring a Defendant’s Claim against that third party, so all related claims are dealt with in one proceeding rather than in separate lawsuits.
Set-off is when the amounts owed in each direction are netted against each other. If the plaintiff proves you owe them $8,000 and you prove they owe you $5,000, the practical result may be a net judgment of $3,000. Set-off is a common feature where both parties have valid claims.
Yes. Filing a Defendant’s Claim carries its own court filing fee, similar to filing a Plaintiff’s Claim. As with any claim, the cost should be weighed against what you realistically expect to recover.
It can. A genuine counterclaim changes the dynamics of the case and is often addressed at the settlement conference, where both claims are on the table. That said, a weak or purely tactical counterclaim can hurt your credibility, so it should be based on a real claim.
Yes. The Defendant’s Claim is your own claim; it does not replace your Defence to the plaintiff’s claim. You generally file both, so you are both defending the claim against you and advancing your own.
It can be worthwhile, especially where the counterclaim is significant, involves a third party, or raises set-off. A representative can help you frame the Defendant’s Claim properly, meet the deadlines, and present both sides of the dispute effectively.