Counterclaim

A cause of action pleaded by the diffident under code procedure, which either reduces the claim of the plaintiff, or which authorizes a judgement for the defendant, for the amount by which the counter-claim exceeds the plaintiff's claim.  If the complaint is dismissed altogether, judgement may be given on the counter-claim, as though the defendant were the original plaintiff. A counter-claim is broader than recoupment or set-off.

Under most codes of procedure, a counter-claim may be any cause of action in favor of the defendant which arises out of the transaction on which the complaint is founded or which is connected with the subject matter of the complaint.  If the complaint is on a contract-claim, the defendant may set up by way of counter-claim any cause of action arising out of contract whether connected with the complaint or not.