Counterclaims and Part 20 Claims Explained

TL;DR

CPR Part 20 allows defendants and other parties to bring counterclaims within the same court proceedings. It covers counterclaims, contribution or indemnity claims, and claims against new parties. Used correctly, Part 20 helps courts manage connected disputes efficiently and avoid separate proceedings.

Civil litigation rarely stays confined to a single claim by one party against another. Once court proceedings are underway, defendants often seek to go on the offensive, while others may need to bring further claims against additional parties to protect their position. This is where counterclaims and other additional claims come into play under CPR Part 20.

Part 20 of the Civil Procedure Rules 1998 provides the procedural framework that allows these connected disputes to be resolved within one set of proceedings, rather than through fragmented and inefficient separate actions. When used properly, Part 20 can streamline litigation, avoid inconsistent outcomes, and give the court a complete picture of the dispute. When misunderstood, it can derail a case entirely.

This article explains counterclaims and Part 20 claims in depth, focusing on how the rules operate in practice, what the court may allow, and where litigants commonly go wrong.

What Is CPR Part 20 and Why Does It Exist

CPR Part 20 exists to enable counterclaims and other additional claims to be managed in the most convenient and effective manner. That purpose underpins every procedural decision made under the rule.

In simple terms, Part 20 governs:

• A counterclaim by a defendant against the claimant
• An additional claim brought by a defendant against another party
• Further claims brought by someone added to the proceedings

The rule recognises that disputes are often interconnected. Rather than forcing parties into separate proceedings, the civil procedure rules allow related claims to be heard together, provided this promotes fairness and efficiency.

Understanding the Core Definitions Under Part 20

Before applying Part 20, it is essential to understand its terminology.

An additional claim means any claim that is not the original claim brought by the claimant against the defendant. It can include a counterclaim, a claim for contribution or indemnity, or a claim made against someone who is not already involved in the court proceedings.

Under Part 20, party roles can also shift. The terms claimant and defendant may apply to those pursuing or resisting an additional claim, which is essential when preparing statements of case and responding to claims appropriately.

What Is a Counterclaim Under CPR Part 20

A counterclaim is a claim brought by the defendant against the claimant within the same court proceedings. It allows the defendant not merely to respond to a claim, but to advance their own cause of action arising out of the same or related facts.

A counterclaim might:

• Reduce or extinguish liability under the original claim
• Seek damages or another remedy against the claimant
• Shift the balance of leverage within the litigation

Under CPR Part 20, a counterclaim is treated procedurally as its own claim, subject to specific modifications.

When and How a Defendant May Make a Counterclaim

In most cases, a defendant may make a counterclaim at the same time as they file a defence. This is the cleanest and safest route. When done this way, permission is not required.

If the defence is already filed, the defendant must apply for permission to make an additional counterclaim. The court gives permission only if satisfied that the counterclaim can be dealt with fairly and without disrupting the proceedings.

Timing matters. Late counterclaims raise red flags and often face resistance unless there is a clear justification.

Defence and Counterclaim as Statements of Case

Ensure that the statement of truth complies with the latest CPR 22 requirements, which may have updated wording and verification standards.

This means:

• Clear factual pleadings
• Properly articulated legal arguments
• A concise statement of the remedy sought
• Verification by a statement of truth

Although the defence responds to the claim by the claimant, the counterclaim stands independently. Weak pleading here exposes the counterclaim to strike-out or summary disposal.

Counterclaim Against the Claimant and Another Party

Part 20 also allows a counterclaim against the claimant and an additional party together. This often arises where liability is shared or where a third party’s conduct is integral to the dispute.

Where a person not already a party is involved, the defendant must seek the court’s permission to add them. The court must consider whether it is appropriate to bring that person into existing court proceedings or whether the issues should be dealt with separately.

What Is an Additional Claim Under CPR Part 20

Not all Part 20 claims are counterclaims. An additional claim covers a broader range of situations, including:

• Claims against a co-defendant
• Claims against a third party
• Claims brought by someone added to the proceedings

These are often described collectively as additional claims – civil procedure, and Part 20 provides the mechanism for bringing them without issuing fresh proceedings.

Claims for Contribution or Indemnity Explained

One of the most common uses of Part 20 is a claim for contribution or indemnity.

A defendant may believe that if they are found liable under the main claim, another party should reimburse them in full or in part. CPR Part 20 allows this through a contribution or indemnity notice.

If served with the defence, permission is not required. Otherwise, the defendant must seek the court’s approval. This route avoids the need for separate proceedings and ensures liability is allocated fairly.

What Happens if a Part 20 Claim Is Ignored

If a Part 20 defendant fails to respond, the consequences depend on the nature of the claim.

For counterclaims, Part 12 default judgment applies in the usual way if the claimant fails to file a defence to counterclaim in time. For other additional claims, a failure to respond does not give an automatic right to default judgment under Part 12, but the Part 20 claimant can usually seek judgment by application (for example, on a clearly pleaded, quantified indemnity claim), or rely on deemed admissions and invite the court to enter judgment.

The court retains discretion and may set aside a default judgment where justice requires, but relying on this is risky.

You can also read: Acknowledgement of Service (CPR 10) and Defence Deadlines (CPR 15)

Strategic Risks and Common Errors Under Part 20

Despite its usefulness, Part 20 is frequently mishandled.

Common errors include:

• Confusing counterclaims with other additional claims
• Missing permission requirements
• Bringing Part 20 claims too late
• Overcomplicating litigation unnecessarily

In some cases, attempting to force everything into one set of proceedings weakens a party’s position rather than strengthening it.

Get to know about: Default Judgment (CPR 12): When You Can Get It and How Defendants Can Stop It

Need Strategic Advice on Counterclaims and Part 20 Claims?

Part 20 claims can shift the balance of a dispute, but only when they are used correctly. Our experts at Civil Litigation Lawyers advise on counterclaims, additional claims, and complex multi-party proceedings, helping you protect your position and avoid procedural mistakes that can undermine your case.

If you are defending a claim, considering a counterclaim, or assessing whether to bring a Part 20 claim, early advice can make a decisive difference. Reach out to discuss your options and take control of the litigation process.