Overview

Counterclaims are the procedural backbone of fairness in North Dakota small claims court. They give defendants an opportunity not just to defend against the plaintiff’s demand, but to assert their own claim arising from the same transaction or occurrence. A counterclaim balances the scales: if the plaintiff says “you owe me,” the defendant may respond, “in fact, you owe me.” The North Dakota Small Claims Act, N.D.C.C. § 27-08.1, explicitly allows a defendant to file a counterclaim at or before the hearing. The rule ensures that related disputes are resolved in one setting rather than through multiple suits. However, counterclaims come with boundaries—most notably the same jurisdictional cap of $15,000 exclusive of costs and interest. They must also arise from the same facts or contractual relationship that produced the plaintiff’s claim, and must be provable with straightforward evidence suitable for small-claims procedures.

Understanding counterclaims requires grasping both their purpose and limitations. Small claims court is designed for accessibility, speed, and simplicity. It is not equipped for sprawling multi-party litigation. Thus, while a counterclaim allows a defendant to turn the tables, it must remain simple enough to be decided within a single short hearing. The defendant becomes a counter-plaintiff for that limited purpose. Filing a counterclaim changes courtroom dynamics: both sides now bear the burden of proof on their respective issues, and both may emerge owing money depending on which side proves stronger documentation. A properly crafted counterclaim keeps disputes symmetrical, preventing one-sided judgments and encouraging complete resolution without expensive follow-up cases in district court. Because many self-represented litigants overlook this right, the counterclaim rule remains one of the most underused tools in North Dakota’s small-claims system.

Who Benefits and Who Can Apply

Counterclaims benefit defendants who believe the plaintiff’s demand ignores or understates the plaintiff’s own wrongdoing. Typical examples include disputes over workmanship, incomplete services, defective products, or unpaid wages offset by property damage. For instance, if a contractor sues a homeowner for a $4,000 balance, the homeowner may counterclaim $2,000 for defective work requiring repair. The court will hear both claims together and net out the results. Any party originally sued in small claims court—the “defendant”—may assert a counterclaim so long as it meets three conditions: (1) it is within the $15,000 jurisdictional ceiling, (2) it relates to the same transaction or facts, and (3) it can be proven through ordinary evidence such as receipts, photographs, or written communications. Corporations and partnerships appearing through authorized officers may file counterclaims on behalf of the entity under the same standards.

Certain disputes are excluded. Counterclaims seeking injunctions, property transfers, or purely equitable relief exceed the court’s authority. A defendant cannot use the counterclaim mechanism to compel performance (“finish the job”) or to request declaratory rulings. Only monetary demands are permitted. Similarly, counterclaims against individuals not already parties require filing a separate small-claims case; the court cannot add new defendants via counterclaim. Understanding these boundaries keeps litigants from wasting time or triggering dismissal. The greatest beneficiaries of the counterclaim system are small businesses, landlords, and consumers who frequently find themselves on both sides of transactions. They can efficiently resolve all obligations in a single short hearing instead of chasing parallel suits. In effect, counterclaims make North Dakota’s small-claims forum two-way justice—fast, affordable, and balanced.

Benefits of Understanding Counterclaim Rules

• Allows defendants to recover money they are legitimately owed without filing a separate case.
• Promotes judicial efficiency by consolidating related disputes into one hearing.
• Reduces inconsistent outcomes and duplicate costs between two related cases.
• Encourages settlement because both sides face potential exposure.
• Protects defendants from default judgments by giving them a proactive stance.
• Streamlines enforcement—judges can offset competing awards in the same judgment.

Step 1: Identify Whether You Have a Counterclaim

The first step in asserting a counterclaim is recognizing whether your dispute with the plaintiff meets the legal and factual definition. A counterclaim must be logically connected to the same event, transaction, or contract that underlies the plaintiff’s claim. Ask yourself: would I have filed this lawsuit even if the plaintiff had not sued me? If the answer is “yes,” it might be independent and therefore requires a separate small-claims filing. If the answer is “no—it arises from the same job, bill, or accident,” it likely qualifies as a proper counterclaim. North Dakota small-claims judges value efficiency, so they prefer one hearing that addresses all money owed between the parties. To qualify, the counterclaim must request only monetary damages up to $15,000, exclusive of interest and costs, and must be supported by clear documentation.

Common qualifying scenarios include overpayment or defective performance. For example, a tenant sued for rent may counterclaim for unreturned deposit or for property damage caused by landlord neglect. A car-repair shop sued for faulty service may counterclaim unpaid parts charges. These mirror transactions—two sides of one coin. Begin by outlining the plaintiff’s claim on paper, then list how their alleged actions or omissions caused you loss. Convert every grievance into a dollar figure: repairs, replacements, refunds, or lost value. Avoid emotional or punitive requests (“pain,” “stress,” or “inconvenience”) since the court awards actual, provable damages only. Once your counterclaim fits these parameters, you can proceed to file or assert it orally at the hearing. The clarity of identification at this stage determines how credible and manageable your counterclaim will appear later.

Finally, timing matters. The statute allows filing a counterclaim any time before or at the hearing, but earlier submission gives both the plaintiff and the court fair notice. If you wait until the day of hearing, bring three printed copies of your written counterclaim with supporting exhibits to hand to the clerk and the plaintiff. Early identification also allows potential settlement: many plaintiffs withdraw or compromise once they see they may owe money too. Recognizing your counterclaim early turns defense into strategy—transforming reaction into initiative within North Dakota’s small-claims framework.

Step 2: Calculate and Document Your Counterclaim Amount

After confirming eligibility, quantify your counterclaim precisely. The North Dakota small-claims court will not estimate losses for you; your burden is to present a dollar figure supported by evidence. Begin with a worksheet: list each component of your loss—repairs, refunds, replacements, and incidental costs such as towing or rental equipment. Each line should correspond to a receipt, invoice, or photograph. If the plaintiff sues for $5,000 and you counterclaim $3,200, specify exactly how you computed that number. Include sub-totals, credits, and a clear total at the end. Judges value transparency. Overstated or rounded guesses damage credibility; under-documentation invites rejection. Keep your math conservative and easily traceable.

Include proof of payment where applicable. Bank statements, canceled checks, and Venmo screenshots demonstrate actual expenditure. Attach only relevant pages—judges appreciate brevity. For estimates, obtain at least two written quotes from licensed professionals on business letterhead. Mark each with a label (“Exhibit A,” “Exhibit B”) and date. Where you claim lost wages or downtime, provide verifiable hourly rates and time logs. Avoid speculative claims (“I might lose future business”); small claims deals only in present, concrete losses. Your documentation packet should read like a financial story: what happened, what you spent, what remains unpaid. Before filing, review that your total does not exceed $15,000 exclusive of interest and costs; if higher, you must either waive the excess or proceed in district court.

Finally, create a simple one-page ledger summarizing each item, amount, and exhibit reference. This becomes your “road map” at hearing. The ledger helps you and the judge track each dollar visually during presentation. It also speeds calculation if both parties owe each other money—judges often offset amounts on the record to issue a single net judgment. Accurate computation and professional presentation make your counterclaim persuasive and enforceable. Precision transforms a defensive posture into a confident, evidence-driven demand.

Step 3: File or Serve Your Counterclaim Properly

Filing mechanics depend on timing. If you decide to counterclaim immediately after receiving the plaintiff’s notice, file your counterclaim with the same clerk of court handling the original case. Bring or mail a completed Small Claims Counterclaim Form (available from the clerk or the North Dakota Courts website). Include your evidence packet and the filing fee, typically equal to the plaintiff’s initial fee ($10–$50). If you prefer, you may wait and present the counterclaim orally at the hearing; however, advance filing is better practice. Early filing ensures the plaintiff receives notice and the court can allocate sufficient hearing time. Whether filed or oral, your counterclaim becomes part of the same case number; there is no new docket fee beyond the counterclaim filing charge.

When you file, request conformed copies stamped “Filed” from the clerk and mail or hand one to the plaintiff. This satisfies notice requirements. Keep proof of mailing (certified receipt or affidavit of service) in your file. Failing to notify the plaintiff can lead to exclusion of your counterclaim at hearing. In North Dakota, service by mail is generally sufficient for counterclaims, provided it reaches the opposing party before the hearing date. If you learn of the claim late and cannot file early, arrive at the hearing with three complete sets—court, plaintiff, and your own—and ask permission to file your counterclaim on record. Judges almost always allow it if fairness requires. What matters is good faith and preparedness, not perfect timing.

Finally, confirm jurisdiction and venue remain proper. The counterclaim must relate to the same transaction and parties; adding unrelated issues or third parties converts it into a separate suit. Keep the scope narrow. Filing correctly and transparently ensures that both claims—plaintiff’s and counterclaimant’s—will be heard and decided together, saving time, fees, and potential duplication of judgment enforcement.

Step 4: Prepare Evidence and Hearing Strategy for Dual Roles

Once both sides have claims, you wear two hats: defendant and plaintiff. Your preparation must reflect both roles. Begin by restating each side’s issues in parallel columns—plaintiff’s claim on the left, your counterclaim on the right. Under each, list your evidence and possible rebuttals. The goal is to maintain clarity during hearing. The judge will often alternate questions between the two claims, so you must pivot smoothly. Bring three labeled exhibit sets: one for the court, one for the opposing party, and one for yourself. Label everything consistently: “P-1” for plaintiff exhibits you will reference, “D-1” for your counterclaim exhibits. This reduces confusion and reinforces professionalism.

Anticipate the plaintiff’s arguments. Because you also carry the burden of proof on your counterclaim, be ready with concise testimony and supporting documents. Avoid repeating emotional narrative; focus on sequence, responsibility, and cost. If the plaintiff presents receipts or estimates contradicting yours, calmly point to your documentation’s stronger foundation—licensed provider, date proximity, or corroborating photos. If both sides present estimates, judges often split the difference; prepare clear reasoning why your figure represents the fair cost. Remember that counterclaims can offset rather than eliminate payment obligations. For instance, if you owe $5,000 but prove $2,000 in damages, the judgment may net to $3,000. Be precise and respectful when discussing offset; the judge will appreciate clarity.

Finally, practice brevity. Small-claims hearings are brief—often fifteen to thirty minutes—so your dual presentation must fit within that time. Draft a one-minute opening summarizing both defenses and counterclaims: “Your Honor, the plaintiff claims I owe $4,800 for repair work, but I counterclaim $2,100 for damage caused by improper installation. I have receipts and photos marked Exhibits A through C.” This signals organization and fairness. End with a concise closing: “After offsets, I believe the fair balance is $2,700.” Clear, professional demeanor reinforces your credibility as both a defending and counter-asserting party. Preparation transforms complexity into coherence—the key to winning counterclaims in North Dakota’s small-claims court.

Step 5: Respond to the Plaintiff’s Evidence While Strengthening Your Counterclaim

By the time your hearing date approaches, the plaintiff will have assembled exhibits—receipts, contracts, and photos—to support their claim. Step 5 requires you to examine those materials closely and plan your evidentiary counterattack. The key to prevailing on a counterclaim is not just producing proof of your own losses, but systematically undermining the assumptions behind the plaintiff’s numbers. In North Dakota small-claims court, judges are practical and data-driven: they rely heavily on written documentation. Your objective is to demonstrate that the plaintiff’s calculation is inaccurate or incomplete while your counterclaim rests on clearer, better-supported facts. Start by requesting, if possible, a copy of the plaintiff’s exhibit list in advance. Some courts provide informal exchange opportunities through small-claims advisors or clerks. If not, prepare for surprise exhibits by printing duplicates of all relevant documents and bringing blank paper for quick notes during hearing.

Compare the plaintiff’s invoices to your own. Look for inconsistencies in dates, missing signatures, or inflated labor hours. Highlight differences directly on a working copy; judges appreciate visual aids. If a plaintiff claims you failed to pay for goods delivered, but your bank statement proves payment, enlarge the statement portion showing the date, payee, and cleared amount. If you dispute quality, print side-by-side photos before and after the alleged repair or delivery. Where your counterclaim involves return costs or corrective work, attach professional invoices showing specific remedial actions. For example, “Rewired faulty installation performed by ABC Electrical – $612.48.” Every item should directly connect to an error or omission in the plaintiff’s proof. This mirror-structure—claim and rebuttal—simplifies the judge’s reasoning and demonstrates thorough preparation.

Maintain composure while challenging evidence. Do not accuse the plaintiff of deceit unless you can demonstrate objective falsity. Simply state, “Their Exhibit 3 omits the second page showing credit issued.” Calm factual correction earns judicial credibility. If the plaintiff introduces new materials during the hearing, ask respectfully for a short review period; courts routinely allow brief pauses for fairness. Once you rebut each key exhibit, pivot smoothly to your counterclaim by summarizing: “As shown, I do not owe the $4,800 claimed; instead, due to defective work, I incurred $2,100 in repairs.” This transition unites defense and counterclaim into a coherent story. The best litigants make the judge’s decision easy: one side appears methodical and transparent, the other speculative or inconsistent. That difference often determines who wins the net judgment.

Step 6: Present Your Counterclaim Persuasively at the Hearing

Small-claims hearings in North Dakota are intentionally conversational. Judges expect litigants to speak plainly, summarize key events chronologically, and refer to documents rather than legal jargon. When it is your turn, stand, address the judge respectfully (“Your Honor”), and open with a succinct orientation: who you are, what the plaintiff seeks, and why you are counterclaiming. For example: “Your Honor, I am the defendant, John Keller. The plaintiff seeks $6,200 for kitchen remodeling. I counterclaim $2,800 for incomplete work and additional repair costs.” This framing tells the court there are two active monetary questions, not just one. From there, narrate events logically—contract signed, work performed, defect discovered, expense incurred. Avoid digressions about character or emotion. The court’s goal is to quantify loss, not assign moral blame.

When introducing exhibits, hold each document up briefly, state its label, and describe relevance in one sentence: “Exhibit A is the signed agreement,” “Exhibit B shows the damage on March 12,” “Exhibit C is the invoice from the licensed contractor who corrected it.” Then hand the set to the clerk or bailiff as directed. Keep eye contact with the judge, not the plaintiff. Speak slowly; clarity beats volume. Judges often jot notes as you speak—pause when they write. If interrupted for questions, answer directly and return to your outline. Prepare a one-page summary sheet combining your counterclaim ledger with total requested amount; this helps the judge perform quick math while you speak.

Anticipate that the plaintiff may attempt to shift discussion back to their main claim. Politely acknowledge and refocus: “That may relate to their original claim, but in my counterclaim the issue is cost of correction.” Professional composure distinguishes credible self-represented litigants. End with a short closing sentence reinforcing fairness: “After considering both claims, I believe the proper balance is that the plaintiff owes me $2,800.” Avoid argumentative tone; persuasion in small claims rests on demeanor as much as evidence. Judges remember organized, courteous parties more favorably. A clear, linear presentation transforms a complex two-way dispute into an orderly, winnable case.

Step 7: Understand How Offsets and Net Judgments Work

One of the most distinctive features of counterclaims is the concept of offset. The court doesn’t issue two separate judgments—it nets the two amounts and enters a single figure for whichever side prevails. Understanding how offsets operate is crucial to planning negotiation and presentation strategy. Suppose the plaintiff claims $10,000 and you counterclaim $7,000. If the judge finds both sides partly correct, awarding $8,000 to the plaintiff and $5,000 to you, the resulting judgment will show a net $3,000 owed to the plaintiff. Interest and costs accrue only on that net balance. This mechanism simplifies enforcement but requires you to articulate each component clearly during the hearing. Many defendants fail to specify offset math, leaving the court to guess; unclear arithmetic can reduce your recovery.

Prepare your offset explanation in advance. Create a summary chart with three columns: plaintiff’s claim – admitted or disputed, your counterclaim – basis and proof, and “net result” if both succeed. Bring printed copies for judge and plaintiff. During closing remarks, walk through the math slowly: “If the court finds their unpaid balance valid at $4,800 but also finds my repair costs valid at $2,100, then the net due is $2,700.” That demonstration communicates transparency and helps the judge finalize numbers quickly. Courts appreciate litigants who make computation effortless. Keep in mind that North Dakota small-claims judgments automatically include lawful costs and interest on the final net figure under N.D.C.C. § 28-20-34, but only the winning side may recover service and filing fees. Explaining offset arithmetic increases the likelihood that the judge records those amounts correctly on the notice of judgment.

Offsets also influence settlement posture. Because either side could owe money after netting, both have incentive to negotiate early. Present your counterclaim ledger when discussing resolution before hearing; it signals confidence and preparedness. Even if settlement fails, the judge sees that you approached the case professionally. Finally, remember that an offset judgment carries identical enforcement power as any other. If you win net recovery, you may file for garnishment or execution just as a plaintiff would. Understanding offsets converts procedural knowledge into tactical advantage—an essential skill for effective small-claims advocacy.

Step 8: Manage Appeals and Post-Judgment Motions Involving Counterclaims

Either party dissatisfied with a small-claims outcome—plaintiff or defendant—may appeal to the district court within 30 days after the clerk mails the Notice of Entry of Judgment. When a counterclaim exists, the appeal automatically includes both sides’ issues; the district-court hearing is de novo, meaning a completely new trial. No new pleadings are needed—the same facts, exhibits, and claims are reconsidered under formal rules of evidence. Before deciding to appeal, evaluate proportionality. If your counterclaim was for $2,000 and you lost, the filing fee, transcript costs, and preparation time may exceed potential recovery. Conversely, if the net judgment is substantial or legally important, an appeal ensures full judicial review. North Dakota’s policy favors finality, but it also respects fairness: either side has equal opportunity to seek reconsideration provided deadlines are met.

To initiate an appeal, file a written Notice of Appeal with the clerk of district court in the same county and pay the statutory filing fee (typically $125). Notify the other party by mail and keep proof of service. The small-claims judgment is stayed—temporarily unenforceable—while the appeal proceeds. In district court, attorneys may appear, and the process becomes more formal. Prepare to restate your counterclaim with numbered paragraphs and attach copies of all exhibits. Although the hearing is de novo, judges often read the small-claims file to gauge credibility; maintaining consistency between versions strengthens your position. If you prevailed below, defend efficiently by emphasizing documentation rather than relitigating emotion.

Post-judgment motions follow similar logic. If either side believes an arithmetic error or oversight occurred—such as failure to include offset or costs—they may file a motion to amend within 10 days. Be concise and attach supporting calculations. Counterclaimants often use this to correct the record where both sides partially prevailed. Appeals and motions are part of responsible follow-through: they transform procedural diligence into final accuracy, ensuring your counterclaim’s outcome reflects true equity under North Dakota law.

Step 9: Enforce or Defend a Judgment Resulting from a Counterclaim

When judgment is entered, the clerk issues a Notice of Entry of Judgment showing which party owes money and in what net amount. If the ruling favors you on your counterclaim, you become the “judgment creditor.” Wait 30 days before enforcement; that window allows time for appeal. Afterward, request a Transcript of Judgment or Writ of Execution from the clerk. With these, you may garnish wages, levy bank accounts, or record liens on real property. Each tool has forms available through the North Dakota courts’ self-help center. Serve the writ through the sheriff or levying officer, paying a modest administrative fee recoverable from the debtor. Keep meticulous records of payments received, interest accrued, and costs added—judges may review them later if disputes arise.

If you lost after asserting a counterclaim, you are the “judgment debtor.” Pay voluntarily within 30 days to avoid garnishment and credit consequences. Contact the opposing party to arrange certified-check payment and request an Acknowledgment of Satisfaction of Judgment once paid. If unable to pay lump sum, propose installment arrangements in writing. Most creditors prefer structured payments over protracted collection efforts. Ignoring the judgment can lead to wage deductions or liens; North Dakota law allows 20% of disposable earnings to be withheld until satisfaction. Remember that even a small-claims judgment appears in public record databases; prompt resolution preserves your credit profile.

For both sides, enforcement represents the final accountability stage of the counterclaim process. Maintain professionalism and documentation just as you did during trial. Successful collection completes the legal cycle: claim, defense, counterclaim, judgment, and satisfaction. Treat each step with the same rigor you applied in preparation—North Dakota’s small-claims system rewards diligence all the way through enforcement.

Step 10: Close the File and Learn from the Outcome

After payment or satisfaction, file the Acknowledgment of Satisfaction of Judgment with the clerk. If you recorded a lien or abstract, file a release with the county recorder. These steps legally close the matter and prevent later disputes. Then archive your documentation in an orderly fashion: pleadings, exhibits, notices, receipts, and correspondence. Label the folder with case number, parties, and “Closed – Date.” Maintaining a complete record helps if related business or consumer relationships continue or if future audits or credit verifications arise. Many small-business defendants evolve recurring processes from these files—templates for contracts, pre-dispute letters, and quality-control checklists that reduce future litigation.

Reflect on strategic lessons. Did early identification of counterclaim potential change negotiations? Did precise documentation influence the judge’s trust? Record those insights in writing. The experience of litigating a counterclaim—especially without counsel—sharpens judgment and negotiation skills. North Dakota’s small-claims structure exists not only to resolve disputes but to teach civic accountability. Defendants who counterclaim responsibly often become more careful contractors, landlords, or customers. They learn to confirm terms in writing, maintain receipts, and communicate clearly before conflicts escalate. Those practices reduce future claims on both sides.

Finally, acknowledge the system’s value. The counterclaim procedure embodies procedural symmetry—an equal voice for both parties under the $15,000 ceiling. By understanding and using it fully, you contribute to judicial efficiency and fairness statewide. Each well-handled counterclaim strengthens confidence in accessible justice. When your case concludes, close your file with a sense of completion—not merely that you “won,” but that you navigated the law with precision, civility, and respect for process. That professional discipline is the real victory in North Dakota’s small-claims court.

Costs

Bringing or defending a counterclaim in North Dakota small-claims court remains among the least-expensive forms of civil litigation in the country. Filing a counterclaim normally costs between $10 and $50, depending on county and claim size. If you file the counterclaim at the same time you submit your Answer or appear at the hearing, you pay the standard small-claims filing fee rather than a separate district-court charge. The clerk issues a stamped copy under the same case number. This modest payment covers docketing, clerical time, and the clerk’s preparation of the Notice of Hearing reflecting both claims. If you prevail, those filing costs, together with any certified-mail or sheriff-service expenses, can be added to your recoverable judgment under N.D.C.C. § 27-08.1-04. Plaintiffs must reimburse them once the offset calculation favors you.

Indirect costs include copies, printing, and certified-mail fees—usually under $25 total—and optional notary services when submitting affidavits. Most self-represented litigants complete all forms without legal assistance; attorneys are rarely allowed in small-claims court unless both sides consent. Consequently, you save the hundreds of dollars otherwise spent on hourly legal consultation. However, time has value too: gathering receipts, obtaining estimates, and preparing exhibits may consume several evenings. Consider that investment part of your “litigation cost.” For businesses or landlords who handle frequent disputes, creating reusable templates—counterclaim forms, expense ledgers, and exhibit covers—reduces future preparation time dramatically. Even counting photocopying and parking, a typical defendant who asserts a counterclaim spends less than $100 out-of-pocket to protect thousands in potential recovery, an unmatched cost-benefit ratio in any judicial forum.

Time Required

The timeline for counterclaims mirrors that of the main case but can lengthen slightly depending on complexity. After filing, the clerk typically schedules a hearing four to six weeks away. Because counterclaims expand the scope of issues, the judge may allot additional hearing time or continue the session if evidence cannot be completed the same day. In practical terms, most two-sided disputes conclude within 60 to 90 days from the initial filing. Early submission of your counterclaim accelerates scheduling; last-minute oral filings occasionally prompt rescheduling so both sides can prepare, adding two to three weeks. Plan accordingly if your claim involves contractors, multiple invoices, or third-party witnesses.

Judgment is usually announced at the end of hearing or mailed within a week. The losing party then has 30 days to appeal. Once that period passes, the winning counter-claimant may enforce the judgment immediately. Collection efforts—such as wage garnishment or lien recording—take another 30 to 45 days to yield funds, depending on employer and bank processing. Thus, the entire life-cycle from filing to collection closure averages four months. Compared with district-court litigation that can stretch beyond a year, this is remarkably swift. Even when appeals occur, small-claims cases remain limited to one additional phase in district court, usually completed within another 60 to 90 days. The compact timeline demands readiness: prompt documentation, punctual appearances, and concise communication. Defendants who treat each week as a milestone—filing, service, preparation, hearing, judgment, enforcement—enjoy smoother experiences and fewer surprises.

Limitations

Despite its flexibility, small-claims counter-litigation is bounded by clear jurisdictional and procedural limits. The monetary ceiling remains $15,000, exclusive of interest and costs, for both the plaintiff’s claim and the counterclaim individually. You cannot aggregate them to exceed that total or use the counterclaim to bypass the cap. If your loss truly exceeds $15,000, you may either waive the excess or remove the entire matter to district court under N.D.C.C. § 27-08.1-04. Judges routinely ask counter-claimants to confirm on record that they understand this waiver. The court also lacks authority to issue injunctions, declaratory judgments, or orders compelling performance; money is the only remedy. Furthermore, counterclaims cannot add new parties or seek punitive damages. They must arise from the same transaction or occurrence described in the plaintiff’s affidavit.

Procedurally, you have no right to discovery, depositions, or interrogatories. Evidence must be presented live at the hearing through documents and firsthand testimony. Subpoenas are available but limited; clerks issue them only upon demonstration of necessity. Appeals are de novo, but you cannot raise new counterclaims afterward—they must originate in the small-claims record. Time limitations also apply: a counterclaim barred by the statute of limitations (typically six years for contracts, two for torts) cannot be revived merely because it responds to a new lawsuit. Finally, judges retain discretion to dismiss or transfer any counterclaim they deem too complex for small-claims procedure. The system favors clarity over ambition. Staying within these boundaries ensures your case remains admissible and resolvable in one hearing rather than spiraling into district-court formalities.

Risks and Unexpected Problems

Counterclaims level the playing field but introduce their own hazards. The most frequent is procedural oversight—forgetting to serve the counterclaim properly or failing to bring sufficient copies for the court and opposing party. Judges cannot consider unserved pleadings, and continuances waste valuable time. Another risk is poor calculation; an inflated counterclaim lacking proof damages credibility and may persuade the court you exaggerated losses. Keep every dollar traceable. Likewise, emotional presentation—accusing, interrupting, or arguing—alienates judges accustomed to concise professionalism. Because hearings are short, disorganization is punished severely: if you cannot locate exhibits quickly, the judge may move on. Practice your sequence aloud before the appearance.

Substantively, be wary of mutual-fault outcomes. In many small-claims counter-cases, both sides prove partial validity. The result is an offset judgment smaller than expected or occasionally a wash where neither side recovers costs. Understand this possibility before committing time. Enforcement risk follows victory: collecting from insolvent plaintiffs can take months or prove impossible. Always evaluate whether the opposing party has wages, a steady employer, or property subject to lien. Finally, be conscious of reputation and relationship consequences. Counter-litigation can strain business networks; weigh whether a negotiated compromise might preserve goodwill. The North Dakota small-claims process is transparent—records are public. Acting courteously, even in disagreement, protects your credibility far beyond one dispute.

Authoritative Resources

• North Dakota Courts – Small Claims Self-Help Center
• North Dakota Century Code § 27-08.1 – Small Claims Act
• Official Small Claims and Counterclaim Forms
• District Court Locator and County Clerk Contacts
• Fee Waiver and Cost Guidelines for Low-Income Litigants
• North Dakota Secretary of State – Business Entity Search for Proper Party Names