At the end of 1999, Shogan Naidoo and Kenji Sugahara were taking a class called Technology and the Law at the Knight (University of Oregon) School of Law. The Professor required a class presentation at the end of the term. As their project, the two students decided to work together to devise a business plan for a fictitious company.

Their fictitious company dealt with electronic filing. Once they conducted extensive market research they discovered that the market was still in its infancy. After speaking with judges, court administrators, and practicing attorneys they found that their fictitious company had some potential.

Armed with potential, optimism, and industry knowledge the two set out to change the way law is practiced today.

counterclaim Inc. became an official company on January 11, 2000.