Counterclaims and Other Possible Statements of Case Flashcards
What is the purpose of a counterclaim in civil proceedings?
A) It allows the defendant to challenge the validity of the claimant’s original claim.
B) It allows the defendant to bring a separate claim against the claimant within the same proceedings.
C) It allows the defendant to dispute the jurisdiction of the court.
D) It allows the defendant to add a third party to the claim.
B) It allows the defendant to bring a separate claim against the claimant within the same proceedings.
Explanation: A counterclaim is an additional claim brought by the defendant against the claimant in the same legal proceedings (CPR 20.4).
What is the key difference between a counterclaim and set-off?
A) A counterclaim is a separate claim, while set-off reduces the amount the claimant can recover.
B) A counterclaim must relate to the claimant’s claim, whereas set-off can be unrelated.
C) A counterclaim requires permission from the court, while set-off does not.
D) Set-off can only be used in contract disputes.
A) A counterclaim is a separate claim, while set-off reduces the amount the claimant can recover.
Explanation: A counterclaim is an independent claim by the defendant, whereas set-off reduces the claimant’s claim based on an existing obligation.
When must a counterclaim be filed?
A) At the same time as the defence, unless the court grants permission to file it later.
B) Within 7 days of the claim form being issued.
C) At any point before the trial without restriction.
D) Within 21 days of serving the acknowledgment of service.
A) At the same time as the defence, unless the court grants permission to file it later.
Explanation: A counterclaim should be submitted with the defence unless the defendant obtains permission from the court to file it later (CPR 20.4(2)).
A defendant fails to respond to a counterclaim within the prescribed deadline. What can the claimant do?
A) Apply for summary judgment against the defendant.
B) Seek a default judgment against the defendant.
C) Wait for the court to strike out the counterclaim automatically.
D) Request an unless order from the court.
B) Seek a default judgment against the defendant.
Explanation: If a party fails to respond to a counterclaim, the opposing party can apply for default judgment under CPR 12.3(2)(b).
D is being sued by C for £50,000 for breach of contract. D claims that C owes them £20,000 under a different contract. How should D proceed?
A) File a counterclaim against C for £20,000.
B) Use set-off to reduce C’s claim to £30,000.
C) Apply to strike out C’s claim.
D) Do nothing, as the two claims arise from different contracts.
A) File a counterclaim against C for £20,000.
Explanation: A counterclaim allows D to bring a separate legal action within the same proceedings. Since the claims arise from different contracts, set-off may not be appropriate.
A claimant sues D for £100,000. D counterclaims for £50,000. The court finds C is entitled to £80,000, and D is entitled to £50,000. How much must D pay to C?
A) £100,000
B) £80,000
C) £50,000
D) £30,000
D) £30,000
Explanation: The court offsets D’s £50,000 counterclaim against C’s £80,000 judgment, leaving D with a net liability of £30,000.
A claimant sues a defendant for defective goods worth £40,000. The defendant argues that the claimant still owes them £20,000 for previous deliveries. What is the best strategy for the defendant?
A) File a counterclaim for £20,000.
B) Use equitable set-off to deduct £20,000 from the claim.
C) Apply to strike out the claim.
D) Argue that the claim is out of time.
B) Use equitable set-off to deduct £20,000 from the claim.
Explanation: Equitable set-off applies where there is a close connection between the claims, allowing D to reduce their liability by £20,000.
D wishes to file a counterclaim but has already submitted its defence without one. What must D do?
A) File an application for summary judgment.
B) Request the court’s permission to add a counterclaim.
C) File an additional counterclaim separately without permission.
D) Amend their original defence automatically.
B) Request the court’s permission to add a counterclaim.
Explanation: A counterclaim must be filed with the defence unless the court grants permission for it to be added later (CPR 20.4(2)).
A claimant’s reply must be filed…
A) With the defence.
B) At any time before trial.
C) With the directions questionnaire.
D) Only if the claimant is bringing a counterclaim.
C) With the directions questionnaire.
Explanation: A reply should be filed with the directions questionnaire if the claimant wishes to respond to new allegations in the defence (CPR 15.8).
A counterclaim can be struck out by the court if…
A) It does not relate to the claimant’s claim.
B) It does not disclose a cause of action.
C) The claimant does not respond to it.
D) The counterclaim is for less than £10,000.
B) It does not disclose a cause of action.
Explanation: Under CPR 3.4, a court may strike out a counterclaim if it does not disclose a legally recognized cause of action.
