New York Practice

Federal Courts' Compulsory Counterclaim Rule vs. New York's Permissive Rule

, New York Law Journal

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In his New York Practice column, Patrick M. Connors writes that a plaintiff might elect to sue in a federal court hoping to compel the defendant to interpose as a counterclaim any claim arising out of the transaction on which the plaintiff's claim is based. This would, in effect, deny the defendant an independent choice of forum on the counterclaim. This proposition was recently tested in 'Paramount Pictures Corp. v. Allianz Risk Transfer AG,' which is currently before the New York Court of Appeals.

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