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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.


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? References in periodicals archive
If a Soldier is will be notified that the unearned incentives may be subject to recoupment on a pro-rata basis upon enlistment into the regular Army.
Although Consolidated Edison, known as "Con Ed," was likely partially liable for the cleanup costs of certain contaminated sites, the 2nd Circuit found that to disallow Con Ed from filing an action for recoupment of costs from UGI ran counter to the language of CERCLA as well as the statute's policy rationale of encouraging voluntary cleanup.
I found the original article to be an accurate portrayal of one aspect of the complicated federal Medicaid eligibility criteria, which also permits recoupment of the state expenditures from the recipient's resources without the state's necessarily returning the federal matching funds it had previously received.
 
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