Recoupment


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Recoupment

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: award, compensation, expiation, indemnity, recompense, recovery, refund, reimbursement, replevin, restitution, salvage, satisfaction, setoff, trover
References in periodicals archive ?
The trade creditors contended that it was unfair to prefer the debtors' setoff and recoupment rights.
This discussion will center on recoupment's "same transaction" test and why it can be utilized to achieve sound bankruptcy policy by denying recoupment claims.
On July 15, 2011, the FDIC promulgated rules implementing this recoupment authority.
Most participants must wait about 3 years for PBGC to complete the benefit determination process and provide their finalized benefit amounts, but the vast majority are not affected by overpayments or the recoupment process.
This will effectively leave the rate at a higher level for longer, resulting in the recoupment of more funds.
We generally disagree with the second element of the test, particularly if recoupment is used in its strict Brooke Group sense, (6) but alternative definitions of recoupment might be acceptable.
The doctrine of equitable recoupment allows a litigant, under certain circumstances, to avoid the bar of a statutory limitations period.
The equitable recoupment doctrine is a judicially created doctrine that in certain circumstances allows a litigant to avoid the bar of an expired statutory limitation period (Bull, 295 US 247 (1935)).
If it is included under a TRIA extension, Watjen argued that group life should also operate under a recoupment mechanism that is separate from other lines.
Furthermore, Congress should clarify how any government recoupment process provision would apply to all affected parties.
Recoupment splits between the FFC and producers will be revised to support producers in building viable business.
We already have a recoupment program; it's called the tax system.