Cross-claim

A cross-claim, in legal proceedings, is a claim asserted by a defendant against a co-defendant or third-party. Unlike a counterclaim, which is brought against the plaintiff, a cross-claim addresses disputes between parties on the same side of the initial lawsuit. It allows for the resolution of related issues within a single case, promoting judicial efficiency by preventing the need for separate trials. Successful cross-claims must arise from the same transaction or occurrence, or relate to the same property or subject matter, as the original action or counterclaim. The filing of a cross-claim requires proper notice and often mirrors the procedural requirements of an original complaint.

Cross-claim meaning with examples

• In a construction defect case, the homeowner sued the general contractor, who then filed a cross-claim against the subcontractor responsible for installing the faulty roofing, arguing the subcontractor was liable for any damages owed to the homeowner, and the related damages to the construction.
• Following a car accident, two drivers were sued by an injured pedestrian. Each driver then filed a cross-claim against the other, alleging the other driver was primarily responsible for the accident and therefore liable for contribution to any damages owed to the pedestrian. Both drivers were considered co-defendants.
• During a divorce proceeding, the husband, sued by his wife for property division, filed a cross-claim against his wife's parents, claiming they had fraudulently transferred assets to her and should be included in the property settlement, with the court, the new third party.
• After a contract dispute between a seller and a buyer, where the seller sued the buyer for breach of contract, the buyer filed a cross-claim against a separate financial institution the buyer worked with, saying the financial institution was responsible and gave misleading guidance.
• In a patent infringement lawsuit, Company A sued Company B for infringement. Company B then filed a cross-claim against Company C, claiming that if Company B was found to infringe, Company C was liable for indemnification under a licensing agreement.