set-off

A monetary cross-claim that is also a defence to the claim made in the action by the plaintiff. In modern practice, any claim by a defendant to a sum of money (whether of an ascertained amount or not) that is also used as a defence may be set off against the plaintiff’s claim. The importance of the distinction between a set-off and a *counterclaim arises principally in relation to *costs when both parties are successful. If the defendant’s plea is a set-off, the plaintiff will recover the amount of his claim less the amount set off, and in the county court, the costs will normally be calculated in relation to the net sum recovered. If the defendant’s plea is a counterclaim, the plaintiff will recover the costs of the claim and the defendant the costs of the counterclaim, subject to the court’s overriding discretion as to costs.