Countersuing a Company: Step-By-Step Guide to Fighting Back
You can countersue a company that wronged you by filing a counterclaim in the same lawsuit within 21 days. Counterclaims work best when debt collectors violate the FDCPA or companies cause clear harm with strong evidence. Proper filing, valid legal grounds, and adequate resources determine your success.
Answer Your LawsuitBeen sued for debt but feel like the real victim? You can fight back with a counterclaim.
Filing a countersuit means you sue the company that sued you first. It happens in the same case, using the same court.
Respond to Your Debt Lawsuit in 15 Minutes
Don't let your 21-day deadline pass. Draft your Answer and counterclaim before the court enters a default judgment against you.
Start Your ResponseYou need to understand the rules before you start. Counter suing costs money and takes time. But when a company wrongs you, it might be your best path forward.
What You Need to Know Before Filing a Counterclaim
A counterclaim is a lawsuit you file against the plaintiff in the same case. Courts require you to file it during the original lawsuit or you lose the right forever.
You can sometimes file counterclaims in a separate case later. But combining them saves time and money.
Counterclaims form a major part of civil litigation. Understanding them protects your rights and strengthens your position.
Two Types of Counterclaims Exist
Counterclaims fall into two categories: compulsory and permissive. Each one follows different rules.
Compulsory Counterclaims
Compulsory counterclaims arise from the same transaction as the original lawsuit. The claims connect logically to the plaintiff’s accusations.
You must raise these claims in the same lawsuit. Missing this deadline means losing your right to sue later.
Permissive Counterclaims
Permissive counterclaims don’t emerge from the same transaction. The facts differ from the plaintiff’s original claim.
You can choose whether to file permissive counterclaims in the same lawsuit. Filing them together avoids spending more on separate cases.
Addressing all claims in one action works more efficiently. You face one trial instead of multiple court dates.
Lawsuits Require Significant Resources
Filing a lawsuit drains your finances, time, and emotional energy. You need to consider these costs before countersuing.
The legal system moves slowly. Settlement money takes 1 to 3 months to arrive after resolution.
Without financial resources to see it through, countersuing might not work for you. Pre-settlement funding companies offer lawsuit loans to bridge this gap.
Some companies provide same-day settlement loans when you file a case. You receive funds before your case ends.
Consider Marsha’s situation. An insurance company sued her, blaming her for an accident. Marsha knew the other driver caused the crash.
She wanted to file a counterclaim. But her accident injuries created massive medical bills she couldn’t ignore.
Pre-settlement loans gave Marsha funds to cover medical expenses. She could also afford to file her counterclaim.
Winning the lawsuit means repaying the settlement loan company. You pay back the borrowed amount plus agreed interest and fees.
You typically owe nothing if your lawsuit fails. The funding company takes the risk with you.
Make sure you have all required documents before applying. Legal funding groups need your medical records and case information from your attorney.
You Must Have a Valid Legal Theory
You can’t sue someone simply for suing you. Angry defendants representing themselves often make this mistake.
When suing another party, you need valid legal grounds. Being upset about a lawsuit doesn’t create a legitimate counterclaim.
You also can’t sue for anything happening during litigation. The litigation privilege protects statements made in court.
Consider Billy’s case. A lender sued him for unpaid debts. During testimony, John the debt collector made potentially defamatory statements about Billy.
Billy couldn’t sue John for these courtroom statements. The litigation privilege protected John’s testimony.
But Billy could sue if John made defamatory comments outside of court. Repeating false claims to media outlets creates valid grounds for a lawsuit.
Know Your Counterclaim Deadline
Response time to lawsuits varies by location. Federal Rules of Civil Procedure give you 21 days to file a counterclaim.
The countdown starts when you receive your Summons and Complaint. You must file your Answer within this window.
Read and understand everything in the Summons and Complaint before responding. Each jurisdiction provides standardized response forms.
These documents usually include space for a counterclaim. Our partner Solo helps you draft your response in under 15 minutes.
File your counterclaim with your Answer to the Complaint when possible. Running short on time? File a motion requesting more time from the court.
How to Counter Sue a Company
Filing a counterclaim correctly protects your case. Expect the opposing party to attempt dismissing your counterclaim.
Having an attorney draft your counterclaim ensures proper format. Your document will contain all required information.
Follow these five steps to countersue a company successfully:
Step 1: Look Up Valid Grounds
Research your state’s civil code before filing. Find specific provisions supporting your counterclaim.
Search online for “common law principles” in your state. Contact the clerk of court for guidance on local rules.
Document every violation or harm the company caused you. Strong evidence supports stronger counterclaims.
Step 2: Create Your Counterclaim Form
Many states offer standardized counterclaim forms. Search online for examples from similar cases.
Not using a form? Clearly identify the party and their wrongful actions.
State incident circumstances as specifically as possible. Number each claim and provide supporting facts in order.
Include dates, amounts, and specific violations when applicable. Details strengthen your position.
Step 3: File Your Counterclaim
Submit your counterclaim to the same clerk of courts handling the original lawsuit. File it simultaneously with your response when possible.
Make copies of your counterclaim for your records. Keep detailed documentation of all filings and dates.
Step 4: Pay Filing Costs
The court determines filing fees based on your claim amount. Call ahead or check online for your court’s specific charges.
Filing fees vary widely by location and claim size. In New York, claims under $1,000 cost just $15 to file.
Larger claims require higher fees. Budget accordingly before starting your counterclaim.
Step 5: Serve the Opposing Party
Deliver a copy of your counterclaim to the opposing party after filing. They must respond just like you did.
If an attorney represents them, serve their counsel instead. Call and ask if they accept service for their client.
When they accept, you skip serving the opposing party directly. Document this acceptance in writing.
No attorney involved? Check your state’s legislation for proper service methods. You cannot serve the opposing party yourself.
Your service options typically include:
- Certified or first-class mail through the court clerk
- Personal service by a process server
- Sheriff’s department service
Never skip proper service. Improper service can invalidate your entire counterclaim.
Counterclaim Against Debt Collectors
Debt collectors frequently violate the Fair Debt Collection Practices Act (FDCPA). This federal law protects consumers from abusive collection practices.
These debt collection tactics violate the FDCPA:
- Using obscene or profane language in any communication
- Calling before 8:00 a.m. or after 9:00 p.m. without permission
- Calling your workplace when your employer prohibits such calls
- Threatening physical harm to you or your family
- Threatening financial harm or illegal actions
- Discussing your debt with friends or extended family
- Misrepresenting the amount you owe
- Falsely claiming to be attorneys or government officials
Victims of these practices may receive up to $1,000 per violation. Additional damages for emotional distress might also apply.
When a debt collector sues you, filing a counterclaim might work perfectly. Our partner Solo helps you respond to debt collection lawsuits effectively.
You can stop their harassment and earn deserved compensation. Follow the steps above to file your counterclaim properly.
Document every violation with dates, times, and details. Save voicemails, emails, and text messages as evidence.
Strong documentation makes your counterclaim harder to dismiss. Courts take FDCPA violations seriously.
Deciding Whether to Countersue
Many people fear filing cases against companies. The time commitment and costs seem overwhelming at first.
Understanding how countersuing works helps you make informed decisions. You can evaluate whether filing makes sense for your situation.
Pre-settlement loans from reputable companies provide one solution. These funds help you start your counterclaim without depleting savings.
Some companies offer express funding for fast cash advances. You receive money quickly to cover immediate needs.
Weigh the potential recovery against your costs. Strong cases with clear violations justify the investment.
Weak cases might cost more than any possible recovery. Consult an attorney for an honest case evaluation.
Your rights matter. Companies shouldn’t escape consequences for wronging consumers.