legal Definition of recoupment
1
: the process or fact of recouping
- recoupment of expenses
2 a
: a keeping back of all or part of a sum sought by a plaintiff in the interest of equity — see also equitable recoupment
b
: a reduction in damages because of a demand by the defendant arising out of the same occurrence or transaction
c
: the right of a defendant to have the claim of the plaintiff reduced or eliminated by reason of a breach of contract or duty by the plaintiff in the same occurrence or transaction;
also
: an affirmative defense alleging such a breach
d
: a counterclaim that arises out of the same occurrence or transaction as that of the original action — compare set-off
Note:
Recoupment involves the type of claim that now must be asserted in a compulsory counterclaim.
