Except as otherwise provided by R. 4:64-5 (foreclosure actions) and R. 4:67-4 (summary actions), a pleading may state as a counterclaim any claim against the opposing party whether or not arising out of the transaction or occurrence that is the subject matter of the opposing party’s claim. A defendant, however, either failing to comply with R. 4:30A (entire controversy doctrine) or failing to set off a liquidated debt or demand or a debt or demand capable of being ascertained by calculation, shall thereafter be precluded from bringing any action for such claim or for such debt or demand which might have been so set off.
Rule 4:7-1.Mandatory or permissive counterclaims
Last amended September 1, 1992 · Current through June 18, 2026 · Last verified July 7, 2026
In one sentenceRule 4:7-1 lets a pleading state as a counterclaim any claim against the opposing party, related or not, but warns that the entire controversy doctrine and set-off rules can bar a claim a party fails to assert.
Full Text of Rule 4:7-1
Amendment History
New Jersey publishes each rule’s amendment record in a “History” note beneath the rule. It is reproduced verbatim below; the “R.R.” citations refer to the former Revised Rules numbering the current rules replaced.
Source-R.R. 4:13-1. Amended July 16, 1979 to be effective September 10, 1979; amended June 29, 1990 to be effective September 4, 1990; amended July 14, 1992 to be effective September 1, 1992.
Plain-English Summary
New Jersey takes a broad view of counterclaims. A pleading may state as a counterclaim any claim against the opposing party, whether or not it arises out of the same transaction or occurrence as that party’s claim. On its face the rule is permissive rather than compulsory.
The catch lies in New Jersey’s entire controversy doctrine. A defendant who fails to comply with Rule 4:30A, or who fails to set off a liquidated or calculable debt, is later precluded from bringing an action on that claim or debt. So while the counterclaim rule sounds optional, the doctrine gives a party strong reason to bring related claims in the first action.
Frequently Asked Questions
Are counterclaims mandatory in New Jersey?
The counterclaim rule itself is permissive — a party may state any claim as a counterclaim. But the entire controversy doctrine of Rule 4:30A can preclude a party who withholds a related claim from raising it later, so related claims should be brought in the first action.
Source & verification. The rule text and amendment history are reproduced verbatim from the
official New Jersey Rules of Court (N.J. Ct. R. 4:7-1). Prescribed by the Supreme Court of New Jersey (N.J. Const. art. VI, § 2, ¶ 3). The plain-English summary is original and written by us. Last verified July 7, 2026. ·
Official source
Also known as: counterclaimpermissive counterclaimcompulsory counterclaimentire controversy doctrineset-off