Theresa Plant (plaintiff) executed a note in favor of Blazer Financial Services (defendant) for $2,520 and later sued Blazer in federal court for failure to make disclosures required by the Truth in Lending Act. Blazer counterclaimed under Georgia law to collect the unpaid balance on the note. The court concluded that Blazer's counterclaim was compulsory and exercised jurisdiction over it. The court found for Plant on the truth-in-lending claim and for Blazer on the counterclaim and offset Plant’s award accordingly. Plant appealed, alleging that the court lacked jurisdiction to decide the counterclaim.