re·coup·ment | \ri-ˈküp-mənt \

Legal Definition of recoupment 

1 : the process or fact of recouping recoupment of expenses

2a : 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.

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