Civil Procedure Multistate Bar Practice Exam

What happens if a compulsory counterclaim is not raised in the current proceeding?

1. It remains valid for future claims

2. It will be waived

3. It can be reintroduced in appeal

4. It can be transferred to another jurisdiction

The correct answer is: It will be waived

When a party has a compulsory counterclaim that arises out of the same transaction or occurrence as the opposing party's claim, it is required to be raised in the current proceeding. If the compulsory counterclaim is not asserted, it will typically be waived. This means that the party loses the right to bring that counterclaim in any future actions, effectively barring recovery on that claim. The rationale behind the requirement to raise compulsory counterclaims is to promote judicial efficiency and to avoid multiple lawsuits involving the same issues. By requiring that all claims arising out of a single transaction be litigated in one action, the court can resolve disputes more completely and minimize the potential for inconsistent judgments. The other options do not accurately reflect the legal principle surrounding compulsory counterclaims. For instance, a waived counterclaim does not remain valid for the future and cannot be reintroduced on appeal, nor can it be transferred to another jurisdiction after being waived in the initial proceeding. Thus, the correct identification of the consequences for failing to assert a compulsory counterclaim is that it will be waived.