A compulsory counterclaim must arise from the same transaction or occurrence.

• A. True
• B. False
• C. Only if the court doesn't allow motions to dismiss
• D. It must be pleaded in a separate filing

Answer: (A)

Compulsory counterclaims must arise from the same transaction or occurrence as the plaintiff’s claim. This follows Rule 13(a), which requires a party to plead any counterclaim that is connected to the same core facts as the plaintiff's claim in the same lawsuit. The rationale is efficiency and consistency: resolving related disputes in one action avoids piecemeal litigation and the risk of inconsistent results. If a counterclaim is truly compulsory, it cannot be saved for a later separate suit; it must be raised now, subject to the usual exceptions and limitations. Claims that do not arise from the same transaction or occurrence are permissive and may be brought later, in a separate action if desired.