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  • About Recoupment

  • About Recoupment

    Recoupment requires that the defendant's claim arise out of the same transaction as that sued upon by the United States. See Rothensies v. Electric Storage Battery Co., 329 U.S. 296 (1946).

    The parameters of recoupment are derived from the common law pleading rules concerning counterclaims. Coplay Cement Co. v. Willis & Paul Group, 983 F.2d 1435, 1440 (7th Cir. 1993) (recoupment is the "ancestor" of the compulsory counterclaim presently set forth in Fed. R. Civ. P. 13(a)); Frederick v. United States, supra, at 487.

    In the context of recoupment "transaction" is a word of flexible meaning depending not so much on the immediateness of connection of an occurrence or occurrences, as upon its logical relationship of the events. Moore v. New York Cotton Exchange, 270 U.S. 593, 610 (1926); In re Pinkstaff, 974 F.2d 113 (9th Cir. 1992); Montgomery Ward Development Corp. v. Juster, 932 F.2d 1378 (11th Cir. 1991); Tullos v. Parks, 915 F.2d 1192 (8th Cir. 1990); Savarese v. Agriss, 883 F.2d 1194, 1208 (3d Cir. 1989).

    When recoupment is used as a defense to a plaintiff's action, it is not barred by a statute of limitations as long as the main action itself is timely. United States v. Dalm, 494 U.S. 596 (1990); Bull v. United States, supra, at 262; Matter of Coxson, 43 F.3d 189, 193-94 (5th Cir. 1995).

    This information came from a
    US DOJ online article.

    *** Any law, statute, regulation or other precedent is subject to change at any time ***

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