Ind. Trial Rule 13

Effective January 1, 1971

(A) Compulsory counterclaims.

A pleading shall state as a counterclaim any claim which at the time of serving the pleading

the pleader has against any opposing party, if it arises out of the transaction or occurrence

that is the subject-matter of the opposing party’s claim and does not require for its adjudication the presence of third parties of whom the court cannot acquire jurisdiction. But the

pleader need not state the claim if:

(1) at the time the action was commenced the claim was the subject of another pending

action; or

(2) the opposing party brought suit upon his claim by attachment or other process by

which the court did not acquire jurisdiction to render a personal judgment on that claim,

and the pleader is not stating any counterclaim under this rule.

(B) Permissive counterclaims.

A pleading may state as a counterclaim any claim against an opposing party not arising out of

the transaction or occurrence that is the subject-matter of the opposing party’s claim.

(C) Counterclaim exceeding opposing claim.

A counterclaim may or may not diminish or defeat the recovery sought by the opposing

party. It may claim relief exceeding in amount or different in kind from that sought in the

pleading of the opposing party.

(D) Counterclaim against state.

This rule shall not be construed to enlarge any right to assert a claim against the state.

(E) Counterclaim maturing or acquired after pleading.

A claim which either matured or was acquired by the pleader after serving his pleading may,

with the permission of the court, be presented as a counterclaim by supplemental pleading.

A counterclaim or cross-claim which is not due may be asserted against a party who is insolvent or the representative of a party who has been subjected to insolvency proceedings, if

recovery thereon will be impaired because of such party’s insolvency.

(F) Omitted counterclaim.

When a pleader fails to set up a counterclaim through oversight, inadvertence, or excusable

neglect, or when justice requires, he may by leave of court set up the counterclaim by amendment.

(G) Cross-claim against co-party.

A pleading may state as a cross-claim any claim by one party against a co-party.

(H) Joinder of additional parties.

Persons other than those made parties to the original action may be made parties to a counterclaim or cross-claim in accordance with the provisions of Rules 14, 19 and 20.

(I) Separate trials--Separate judgments.

If the court orders separate trials as provided in Rule 42(B), judgment on a counterclaim or

cross-claim may be rendered in accordance with the terms of Rule 54(B) when the court has

jurisdiction so to do, even if the claims of the opposing party have been dismissed or otherwise disposed of. In determining whether or not separate trial of a cross-claim shall be

ordered, the court shall consider whether the cross-claim:

(1) arises out of the transaction or occurrence or series of transactions or occurrences that

is the subject-matter either of the original action or of a counterclaim therein;

(2) relates to any property or contract that is the subject-matter of the original action; or

(3) claims that the person against whom it is asserted is liable to the cross-claimant for all

or part of plaintiff’s claim against him.

In addition, the court may consider any other relevant factors.

(J) Effect of statute of limitations and other discharges at law.

The statute of limitations, a nonclaim statute or other discharge at law shall not bar a claim

asserted as a counterclaim to the extent that:

(1) it diminishes or defeats the opposing party’s claim if it arises out of the transaction or

occurrence that is the subject-matter of the opposing party’s claim, or if it could have been

asserted as a counterclaim to the opposing party’s claim before it (the counterclaim) was

barred; or

(2) it or the opposing party’s claim relates to payment of or security for the other.

(K) Counterclaim by and against transferees and successors.

A counterclaim may be asserted by or against the transferee or successor of a claim subject

to the following provisions:

(1) A successor who is a guardian, representative of a decedent’s estate, receiver or

assignee for the benefit of creditors, trustee or the like may interpose a claim to which he

succeeds against claims or proceedings brought in or outside the court of administration.

A claim owing by his predecessor may be interposed against any claim brought by such

successor in or outside the court of administration without the necessity of filing such

claim or cause of action in the administration proceedings.

(2) A transferee or successor of a claim takes it subject to any defense or counterclaim

that is the subject-matter of the opposing party’s claim; or that is available to the obligor

at the time of the assignment or before the obligor received notice of the assignment.

(3) A surety or party with total or partial recourse upon a claim upon which he is being

sued may interpose as a counterclaim:

(a) any claim of his own; and

(b) any claim owned by the person against whom he has recourse who either has

notice of the suit, is a party to the suit, is insolvent, has assigned his claim to the surety

or party asserting it, or cannot be found.

A counterclaim under subdivision (b) must tend to diminish or defeat the opposing party’s

claim, or it or the opposing claim must relate to payment of or security for the other,

unless the person against whom recourse may be had is a party to the suit or the counterclaim has been assigned to the party asserting it; and if recovery on the counterclaim

exceeds the opposing party’s claim, any excess recovered shall be held in trust for such

person against whom there is a right of recourse.

(4) Subsections (1), (2), and (3), above, are subject to subdivision (L) of this rule.

(L) Counterclaim and cross-claim subject to substantive law principles.

Counterclaim and cross-claims are subject to restrictions imposed by other statutes and principles of substantive common law and equity, including rules of commercial law, agency,

estoppel, contract and the like. In appropriate cases the court may impose terms or conditions upon its judgment or decree and may enter conditional or noncanceling cross judgments to satisfy such restrictions. This provision is intended to deny or limit counterclaims or

cross-claims:

(1) where a creditor will receive an unfair priority because a claim is assigned after insolvency proceedings, or assigned before such proceedings if it results in an unlawful pref-

erence;

(2) where an unfair priority will be allowed if a surety interposing a claim owned in his own

right against the creditor suing on the principal’s obligation when the principal is solvent

and the creditor is not;

(3) where a claim by or against a representative, such as a guardian, receiver, representative of a decedent’s estate, assignee for the benefit of creditors, trustee or the like

in his individual capacity is asserted against a claim owing or owed by the estate he represents;

(4) where a claim by or against a partnership or two [2] or more obligors is opposed

against or by a claim of an individual to the extent that the individual will be allowed

unfairly to profit or if it will adversely affect the rights of creditors; or

(5) where a claim is cut off by a holder in due course or a transferee who is protected

under principles of commercial law, estoppel, or contract.

(M) Satisfaction of judgment.

Satisfaction of a judgment or credits thereon may be ordered, for sufficient cause, upon

notice and motion. “Credits” include any counterclaim which tends to diminish or defeat the

judgment, or any counterclaim where it or the opposing claim relates to payment of or security for the other.