recoupment

noun

re·​coup·​ment ri-ˈküp-mənt 

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.