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You are here: Home1 / Bankruptcy2 / Affirmative Defense of Recoupment Not Extinguished by Bankruptcy Sale
Bankruptcy, Debtor-Creditor

Affirmative Defense of Recoupment Not Extinguished by Bankruptcy Sale

In affirming Supreme Court’s denial of a motion to dismiss a recoupment affirmative defense, the First Department noted the defense is not extinguished by a bankruptcy sale:

The affirmative defense of recoupment is not an “interest” that is extinguishable by a “free and clear” sale under the Bankruptcy Code … . Further * * * [d]efendant’s recoupment defense arises out of the same transaction (i.e., the same contract) that forms the basis for plaintiff’s action against defendant… . Hispanic Ind Tel Sales LLC v Unaa Vez Mas LP, 2013 NY Slip Op 06518, 1st Dept 10-8-13

 

October 8, 2013
Tags: First Department
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