What is a set-off defense in an insurance litigation case?

A set-off defense in an insurance litigation case is a legal argument that a defendant (the party being sued) can make to reduce the amount of money they owe to the plaintiff (the party suing). This defense is based on the concept of “set-off,” which is a legal doctrine that allows a person or company who owes money to another to reduce the amount due from them by the amount that they are owed from the other party. In Texas, this defense may be used to reduce damages from a breach of contract or an insurance policy. The defendant can raise the set-off defense by presenting evidence that they are owed a certain amount of money from the plaintiff. This can help reduce the total amount the defendant owes. For instance, if the defendant is suing for breach of contract and the plaintiff owes the defendant $10,000, the defense could set off that amount from the amount the defendant would owe the plaintiff. In Texas, the defendant must be able to prove that their claim of a set-off is reasonable. This means that they must provide evidence that the amount they are owed is accurate and that it relates to the issue in the case. The court will then decide whether or not to allow the set-off. If the defense is successful, the amount the plaintiff owes the defendant will be deducted from the total damages the defendant is responsible for.

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What is a set-off defense in an insurance litigation case?

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