RECOUPMENT (OF., Fr. recoupcmcnt, from rccouper, to recoup, cut off, or again, from re-, back again. anew cooper. to cut. from coup, cut, from Lat. co/pa, from Gk. K6Xacpos, ko/aphog, blow with the fist, from KoXarre4v, kolaptcin, to strike). The right of a defendant in an action at law to reduce the amount of the plaintiff's recovery in the action by the amount of any damage which he has suffered by the act or omis sion of the plaintiff growing out of the transac tion or contract sued upon. The term originally signified a mere reduction of the amount of the recovery because of partial payment or former recovery, but in modern practice it denotes any affirmative claim for damages growing out of the cause of action brought which the defend ant asserts as a defense for the purpose only of reducing the amount of the plaintiff's recovery, although he might at his option assert the claim in an independent action. Thus in an action upon contract for the purchase price of goods, the defendant may recoup damages which lie has suffered because of the plaintiff's breach of a col lateral warranty of the quality of the goods; or in an action by a common carrier to recover freight money, the defendant may recoup for loss or injury to the goods resulting from a vio lation of the plaintiff's obligation as a common carrier. In an action upon contract damages
recouped may be for tort, or vice versa provided the recoupment grows out of the transaction sued upon. Recoupment differs from `set-oil" and counterclaim.
Recoupment is a common-law doctrine and has become established in the several States of the United States by judicial decision. The exact limits of the application of the doctrine vary considerably in the different States, and a dis cussion of the rules of the different States would involve the consideration of technical details not within the scope of this article. In many States, particularly those having codes of civil procedure, there are statutory forms of counter claim which include both recoupment and set-off. See SET-OFF; COUNTERCLAIM.