An offset in law, is a reduction in the amount of a
judgment
Judgement (or US spelling judgment) is also known as ''adjudication'', which means the evaluation of evidence to make a decision. Judgement is also the ability to make considered decisions. The term has at least five distinct uses. Aristotle s ...
granted to a losing party based on debts owed by the prevailing
party
A party is a gathering of people who have been invited by a host for the purposes of socializing, conversation, recreation, or as part of a festival or other commemoration or celebration of a special occasion. A party will often feature ...
to the losing party. For example, if an employee successfully sued an employer for
wrongful termination
In law, wrongful dismissal, also called wrongful termination or wrongful discharge, is a situation in which an employee's contract of employment has been terminated by the employer, where the termination breaches one or more terms of the contr ...
, the employer might be entitled to an offset if the employer could demonstrate that it had previously made an overpayment to that employee which had not been returned. A party may similarly be entitled to an offset where it can demonstrate that the prevailing party has already received compensation for its injuries through
insurance
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
, a judgment against another party liable for those injuries, or some other source.
Judgment (law)
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