recoupment

noun | \ ri-ˈküp-mənt \ | re·coup·ment

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 : 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.