Also known as:reconventional demands · counterclaim
Written by attorneys · grounded in primary & secondary sources — see below
An assertion by a defendant in a civil action of any claim against the plaintiff arising from the same or a related transaction.
Sources & Authorities
How it applies
Common Examples
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Patent Counterclaim Removal Attempt
NovaApps LLC sued TitanSoft Corp. in state court alleging only state trade-secret misappropriation. TitanSoft answered and filed a reconventional demand alleging federal patent infringement, then removed the case. The federal court lacked arising-under jurisdiction because the plaintiff's complaint stated no federal claim.
Cost Sanction After Small Recovery
Rising Sun Electronics sued Redline Automotive in federal court seeking $90,000 for unpaid invoices. Redline answered and filed a reconventional demand for $20,000 in setoff damages. The jury awarded the plaintiff only $40,000. The court denied costs to the plaintiff and imposed costs on it under the amount-in-controversy rule.
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Cases
Statutes
Federal Rules
Uniform Acts
Restatements
Dictionaries
Northern Pipeline sued Marathon Pipe Line in bankruptcy court for breach of contract. Marathon answered and filed a reconventional demand asserting a state-law contract claim unrelated to the estate. The Supreme Court held that the bankruptcy court lacked authority to adjudicate the reconventional demand.
Northern Pipeline Construction Co. v. Marathon Pipe Line Co.458 U.S. 50, 102 S.Ct. 2858 (1982)
Course-of-Dealing Counterclaim
Nanakuli Paving sued Shell Oil for breach of a long-term supply contract. Shell answered and filed a reconventional demand seeking damages for Nanakuli's alleged failure to accept minimum quantities. The court permitted the reconventional demand because it arose from the same course of dealing.
Nanakuli Paving & Rock Sales, Inc. v. Shell Oil Co.664 F.2d 772 (9th Cir. 1991)
Jury Trial on Legal Counterclaim
Beacon Theatres sued Westover for antitrust violations and sought equitable relief. Westover answered and filed a reconventional demand for damages at law. The Supreme Court held that the reconventional demand entitled Westover to a jury trial on the legal issues.
Beacon Theatres, Inc. v. Westover359 U.S. 500 (1959)
Preclusion Effect of Prior Judgment
Blonder-Tongue sued University of Illinois Foundation for patent infringement. The Foundation answered and filed a reconventional demand seeking a declaratory judgment of invalidity. After losing on the counterclaim, the Foundation could not relitigate validity against a new licensee.
Blonder-Tongue Laboratories, Inc. v. University of Illinois Foundation402 U.S. 313, 324–25 (1971)
Common questions
Frequently Asked
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Does a reconventional demand create federal-question jurisdiction?+
No. Federal-question jurisdiction exists only when the plaintiff's well-pleaded complaint presents a federal claim. A defendant's reconventional demand, like a defense, cannot supply the federal element required for arising-under jurisdiction.
Supporting sources
How does a reconventional demand affect the amount-in-controversy calculation?+
A reconventional demand is disregarded when determining whether the plaintiff has met the jurisdictional amount. The court computes the plaintiff's recovery without regard to any setoff or reconventional demand the defendant may ultimately obtain.
Supporting sources
When may a party file a supplemental reconventional demand?+
A court may permit a party to file a supplemental pleading asserting a reconventional demand that matured or was acquired after the party served an earlier pleading.
Supporting sources
What is the relationship between a reconventional demand and a compulsory counterclaim?+
A reconventional demand functions as a counterclaim. Under Rule 13(b) a party may state as a counterclaim against an opposing party any claim that is not compulsory.
Supporting sources
471 U.S. 462 (1985)Civil Procedure
…this Court in actions arising out of its franchise agreements." Id. , at 138. Rudzewicz and MacShara then filed an answer and a counterclaim seeking damages for alleged violations by Burger King of Michigan's Franchise Investment Law, Mich. Comp. Laws § 445.1501 et seq. (1979). After a 3-day bench trial, the court again…