Definition - What does Cross Claim mean?
A cross claim is when two parties are on the same side of a lawsuit, yet one of them makes a claim against the other. For example: a car retailer and a car tire company are being sued by a customer who bought a car that had faulty tires, which resulted in an accident. A cross claim would be if the car retailer demanded that the car tire company pay money to it due to the damages accrued from the faulty tires.
Justipedia explains Cross Claim
Sometimes, even if two parties are on the same side of a lawsuit, they can still make claims against each other. This can happen because one party may believe that another party is at fault for the lawsuit in the first place, or because one party believes that the other should pay for some portion of the damages, etc.