If a party fails to plead a compulsory counterclaim arising out of the same transaction or occurrence, what is the consequence?

• A. The counterclaim is barred in a later action.
• B. The court may allow it as a permissive counterclaim.
• C. The claim remains unbarred but subject to amendment.
• D. It becomes a non-issue.

Answer: (A)

Compulsory counterclaims that arise out of the same transaction or occurrence must be raised in the current action. If you fail to plead such a counterclaim, the claim is barred in a later action to prevent piecemeal litigation and to promote efficiency by having all related disputes decided in one proceeding. So, when the counterclaim is compulsory and not pled, you cannot sue on it later—the right to bring it is lost.

The other options don’t fit because a compulsory counterclaim cannot be turned into a permissive one merely by overlook, the claim isn’t simply left “unbarred and amendable,” and it isn’t treated as a non-issue.