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It can be stated as follows:- 1. ) It is an independent claim 2) It is separable from the plaintiff's claim, and 3) It is enforceable by a cross-action in favour of the defendant 1.2. Before 1976, there was no provision regarding the counter- claim in the Code of Civil Procedure.
The counterclaim "arises out of the transaction or occurrence that is the subject matter of the opposing party's claim," AND the counterclaim "does not require adding another party over whom the court cannot acquire jurisdiction,"
These types of claims are called compulsory counterclaims. For example, an employer's claim that a former employee violated his duty of loyalty to the employer may be compulsory in a discrimination lawsuit brought by the employee based on the employee's termination for those disloyal actions.
Often, the defendant raises an affirmative defense, which will have its own elements of proof that must be met by the defendant. Of course, if the defendant raises a counterclaim against the plaintiff, the entire burden of proof shifts to the defendant on the matter of the counterclaim (or third party claim).
There are permissive and compulsory counterclaims. "Common law compulsory counterclaims" are counterclaims that, if successful, would nullify the plaintiff's claim. If defendants do not raise these counterclaims, they cannot sue on them later in a different lawsuit.