A cross-claim is a claim asserted by one party against a co-party. This claim must arise out of the transaction or occurrence that is the subject matter of either the original action or a counterclaim therein. A cross-claim may cover all or part of the original claim.
While a counterclaim is made by a defending party against an opposing party, a cross-claim is made by a defending party against a co-defending party so that the latter may be held liable for the claim the claimant seeks to recover from the cross-claimant. For instance, if A sues B and C for a loan, B, who was an accommodation party, can file a cross-claim against C, asserting C is the true debtor and should be ultimately liable.
The purpose of a cross-claim is to settle in a single proceeding all claims between parties in the case to avoid multiplicity of suits.
The requisites for a cross-claim are that it can only be filed against a co-party, must arise out of the subject matter of the complaint or a counterclaim, and is proper where the cross-claimant stands to be prejudiced by the action against him.
A cross-claim that a party has at the time of filing the answer shall be contained in the answer. It should be set up in the same action.
Generally, a cross-claim not set up shall be barred. This bar applies to cross-claims existing when the answer is filed. A cross-claim cannot be set up for the first time on appeal.
A cross-claim acquired after the answer is served may be pleaded by supplemental pleading before judgment, with court permission. An omitted cross-claim due to oversight or excusable neglect may be set up by amending the pleadings before judgment, with leave of court.
Leave of court is not required for filing a cross-claim. A cross-claim must be answered. The period to answer a cross-claim is ten days from service.
A claim against a co-defendant is set up by way of a cross-claim, not a third-party complaint. A third-party complaint is against a person not yet a party to the action. The dismissal of the complaint carries with it the dismissal of a purely defensive cross-claim, but not a cross-claim seeking affirmative relief.