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recoupment

   Also found in: Dictionary/thesaurus, Financial, Wikipedia 0.01 sec.

To recover a loss by a subsequent gain. In Pleading, to set forth a claim against the plaintiff when an action is brought against one as a defendant. Keeping back of something that is due, because there is an equitable reason to withhold it. A right of the defendant to have a deduction from the amount of the plaintiff's damages, for the reason that the plaintiff has not complied with the cross-obligations or independent covenants arising under the same contract.


recoupment n. the right of a defendant in a lawsuit to demand deduction from the amount awarded to plaintiff (party bringing the suit) a sum due the defendant from the plaintiff in the transaction which was the subject of the lawsuit. Example: Laura Landlord sues Tillie Tenant for nonpayment of rent, Tenant is entitled to deduct a deposit made at the commencement of the lease, or an amount Landlord received from re-renting the apartment before the lease expired. A recoupment is not the same as an "offset" (setoff) which can be money owed from any matter, including outside the lawsuit.


See also: award, compensation, expiation, indemnity, recompense, recovery, refund, reimbursement, replevin, restitution, salvage, satisfaction, setoff, trover


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The bill addresses the projected deficit in the Unemployment Compensation (UC) Trust Fund by increasing the wage base on which unemployment benefits are calculated from $7,000 to $8,500 and shortening the recoupment period from 4 years to 3 years for the next 5 years.
The Bankruptcy Code expands on these rights by providing special treatment for 20-day claims--sums due for goods and services provided within 20 days prior to a bankruptcy filing--and by allowing setoff and recoupment against sums due by the supplier to the customer.
An amendment to IRC [section] 6214(b) included in the Pension Protection Act of 2006 empowers the Tax Court to apply equitable recoupment to offset overpayments of hospital insurance taxes (the Medicare portion of FICA) against income tax deficiencies, according to the court's ruling in Menard Inc.
 
 
 
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