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Counterclaim. The defendant may file a counterclaim, which asserts that the plaintiff has injured the defendant in some way, and should pay damages. ("You're suing me? Well then, I'm suing you.") It may be filed separately or as part of the answer.
You must fill out an Answer, serve the plaintiff, and file your Answer form with the court. Generally, this is due within 30 days after you were served. If you don't, the plaintiff can ask for a default.
If you are not able (or do not want) to settle the counterclaim, you do not need to file anything with the court if you have been served with a counterclaim. You simply attend the scheduled court date to defend yourself. The date and time of the mediation or hearing should be stated on the counterclaim you received.
For example, if two parties to a contract start feuding, the plaintiff may sue the defendant for breach of contract. If the defendant believes that the plaintiff is the one who breached, the defendant can file a counterclaim against the plaintiff.
Examples of counterclaims include: After a bank has sued a customer for an unpaid debt, the customer counterclaims (sues back) against the bank for fraud in procuring the debt. The court will sort out the different claims in one lawsuit (unless the claims are severed). Two cars collide.