Requisites and Tests of a COMPULSORY Counterclaim

Question 1

A compulsory counterclaim is one that:

Answer 1

(A) Arises out of or is connected with the transaction or occurrence constituting the subject matter of the opposing party’s claim;

(B) Falls within the jurisdiction of the court (hearing the original action) both as to the amount and the nature;

(C) Does not require for its adjudication the presence of third persons of whom the court cannot acquire jurisdiction.

Question 2

Questions to determine if the counterclaim is COMPULSORY: (If the answer to these is YES, then, the claim is compulsory)

Answer 2

(A) Would res judicata bar a subsequent suit on the defendant’s claim in the absence of the counterclaim rule?

(B) Will substantially the same evidence support and/or refute the plaintiff’s claim and the counterclaim?

(C) Were the issues of fact and law in the plaintiff’s claim and defendant’s counterclaim largely the same? and

(D) Is there any logical relation between the counterclaim and the defendant’s claim? (COMPELLING TEST)