Counterclaim for what? Which unregulated private parking firm have infested your location and which bottom-dwelling bulk litigation firm have they used to submit the Letter of Claim (LoC)?
Irrespective of which firms you are referring to, simply threatening a counterclaim will not stop them issuing a claim and, unless you have something substantial the counterclaim with, you are likely to do your case mare harm that good. You can always sue later (separately from a combined defence/counterclaim) if you have good reason to do so.
A Part 20 counterclaim will stop them from just discontinuing or having the claim simply struck out. If the claimant usually discontinues, a counterclaim filed under Part 20 may become 'stranded'. Once the main claim is discontinued, the court has discretion whether the counterclaim continues as a standalone claim or is struck out. CPR 38.7 and CPR 20.9 are relevant here. Discontinuance doesn’t automatically kill a counterclaim, but the court may require you to pay a fresh fee or re‑issue it.
If you keep the counterclaim separate:, you avoid procedural entanglement. You can issue your own claim in the ordinary way, ensuring it isn’t dependent on the claimant’s tactical discontinuance. But you pay a separate issue fee and run a separate timetable. It is no more expensive or cheaper than if you file a Part 20 counterclaim with the defence/AoS.
If you show us the LoC and any PCN referred to in that letter (original Notice to Driver/Keeper only. No reminders.) we can advise further on how to respond and what happens next.
