Rule 1658 Set-Off. Counterclaim

If someone sues you in a civil case, you may be able to reduce the amount you owe by claiming that the other party owes you money from the same situation that led to the lawsuit. For example, if someone sues you over a contract dispute, and that same contract means they owe you money too, you can bring that up in your defense.

However, you cannot file a counterclaim, which is a separate claim against the person suing you. You can only use this defense to lower what you might owe, not to win money from the other side.