22-517. Counterclaims exceeding jurisdiction;
procedures; sanctions for improper assertion
A. In any action where a counterclaim is asserted and the amount involved in the
counterclaim exceeds the jurisdictional amount of the small claims division, the court
shall at once terminate the designation as a small claim action, and the action shall
proceed in accordance with the rules relating to all other civil actions.
B. If, at any stage during the proceedings subsequent to the termination of the
small claims designation as provided in subsection A, the justice of the peace or
superior court judge determines that the amount actually involved in the counterclaim is
not in excess of the exclusive civil jurisdictional amount of the small claims division,
the action shall be reinstated in either the small claims division civil docket as a
designated small claim action or in the justice court civil docket as a regular civil
action.
C. If the court which makes a determination as provided in subsection B, that
results in a reinstatement of the small claims designation, further determines that the
amount requested in the counterclaim was asserted for the sole purpose of avoiding small
claims proceedings, the court so finding shall award the plaintiff his costs plus his
actual reasonable attorney fees incurred in defending the counterclaim.
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