This summary is not the rule. The rule text controls.
If you're being sued in small claims court, and you file your own separate lawsuit in district court or magistrate court about the same issue or event, the two cases don't stay separate. The judge handling your bigger court case is required to move the small claims case over and combine it with your case. Both matters then get handled together in one trial.
This rule exists because it doesn't make sense to have two courts deal with the same dispute at the same time. If your claim is closely related to the small claims case, like something you'd normally have to raise as a counterclaim anyway, the law wants everything resolved in one place. This saves time, avoids conflicting decisions, and keeps people from having to fight the same battle twice in two different courtrooms.
If you find yourself in this situation, expect your small claims case to move to the district or magistrate court automatically. You won't need to ask for this to happen. The judge is required to make the transfer once they learn that a related case involving the same facts is already in small claims court.
