recoupment n1 : the process or fact of recouping [ 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
: 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.
Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.