COUNTER-CLAIM

A claim presented by a defendant in opposition to or deduction from the claim of the plaintiff. A species of set-off or recoupment introduced by the codes of civil procedure in several of the states, of a broad and liberal character. A counter-claim must be one “existing in favor of a defendant and against a plaintiff between whom a several judgment might be had in the action, and arising out of one of the following causes of action: (1) A cause of action arising out of the contract or transaction set forth in the complaint as the foundation of the plaintiff’s claim, or connected with the subject of action; (2) in an action arising on contract, any other cause of action arising also on contract and existing at the commencement of the action.” Code Proc. N. Y.