setoff


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setoff (offset)

n. a claim by a defendant in a lawsuit that the plaintiff (party filing the original suit) owes the defendant money which should be subtracted from the amount of damages claimed by plaintiff. By claiming a setoff the defendant does not necessarily deny the plaintiff's original demand, but he/she claims the right to prove the plaintiff owes him/her an amount of money from some other transaction and that the amount should be deducted from the plaintiff's claim. (See: offset, affirmative defense)

setoff

noun allowance, balance, compensation, counter, counter demand, counterbalance, credit, equivalent, offset, opposite, outstanding indebteddess, satisfaction
Associated concepts: affirmative defense, counterclaim
See also: indemnity
References in periodicals archive ?
Once All Phase filed its bankruptcy, PAC moved for relief from the automatic stay in order to exercise its right of setoff asserting that the $52,169.
If the creditor decides to take advantage of its setoff rights under article 40, the creditor is required to notify the administrator.
Although the statute does not expressly refer to restraining notices, it seems abundantly clear that, by enacting section 151 of the Debtor and Creditor Law, the Legislature intended to "cover the field" in terms of the garnishee's right of setoff vis-a-vis the various enforcement devices.
Thus, because recoupment does not require mutuality of obligations and is not subject to the automatic stay in bankruptcy, recoupment is strikingly favored in bankruptcy over setoff.
Goble required a setoff because evidence of the plaintiff's HMO was inadmissible at trial.
71) In an ordinary negligence action, the Florida Supreme Court addressed the issue of setoffs for phantom damages, holding that "contractual discounts fit within the statutory definition of collateral sources.
17) This rule appears to allow the government to use its setoff claim against JGB's claim for full payment on the contract.
The IRS further asserted that BC section 553 preserved the IRS' right to setoff under IRC section 6402(a).
The court noted that the elimination of joint and several liability combined with the decision in a key Florida case made setoff the "ligation du jour" for personal injury practitioners.
With pigment strength even higher than Spectra Color, the new inks allow use of thinner films to obtain high mileage and high quality with less setoff.
For all three main elements of the new provision, subsection 247(1) contains supporting definitions of relevant terms, notably "arm's length transfer," "transfer price," and various calculation concepts relevant principally to the penalty -- namely, "transfer pricing capital adjustment," "transfer pricing capital setoff adjustment," "transfer pricing income adjustment," and "transfer pricing income setoff adjustment.
10, "Omnibus Opinion 1966"), SAB 92 points out that offsetting assets and liabilities has generally been prohibited except where a right of setoff exists.