In the SemCrude Chapter 11 proceeding, the question of triangular setoff
If a creditor whose setoff
is prohibited by article 40 is owed a priority debt in the bankruptcy case and also owes money to the debtor (which could support a setoff
if not prohibited), the People's Court must authorize the setoff
if the value of the priority debt owing to the creditor exceeds the value of the debt owed to the debtor.
501) As for the manifestation of the setoff
, this was rightful under Debtor and Creditor Law section 151:
58) Accordingly, Standard had to assert the defense of recoupment to recover against Terry's suit for future, post-petition benefits because the mutuality requirement for setoff
was not met.
41) In the same vein, it would be improper to allow a setoff
post-verdict because it is contrary to [section] 786.
57) Where there is a post-verdict reduction, it is common that there is a setoff
for any costs or premiums paid by, or on behalf of, the plaintiff to obtain the collateral benefits.
T]he government cannot setoff
payments owed to [plaintiff], a subcontractor and third party beneficiary, with debts owed by [the] prime contractor .
Court of Appeals for the Fifth Circuit analyzed the IRS' right to setoff
in the context of a debtor's bankruptcy proceeding, and came to a decision with significant consequences.
D'Angelo requested that the trial court setoff
the amount of the verdict by the amount of the settlement that the plaintiff received from the hospital.
70, presumably by allowing GEICO a setoff
for benefits previously paid (the arbitration award was silent on this point) as well as deducting allowable expert witness fees.
The CCRA doesn't care how you calculated the setoff
The following required policy amendment appeared in an Industrial Development Agency's lease agreement: "Each policy shall waive any right of subrogation of the insurers there-under against any person insured under such policy, and waive any right of the insurers to any setoff
or counterclaim or any other deduction, whether by attachment or other-wise, in respect of any liability of any person insured under such policy.