Associates Home Equity Services, Inc. v. Troup

The Troups (defendants) obtained a high-interest, high-fee home-repair mortgage that lacked a required federal disclosure, and after they defaulted, Associates (plaintiff) sued in foreclosure; the Troups' predatory-lending and reverse-redlining counterclaims were time-barred under the two-year statute of limitations, but they argued equitable recoupment should still let them reduce the amount owed.

Whether equitable recoupment is an affirmative defense to an action in foreclosure that may allow for a reduction in the plaintiff's damages based on a defendant's time-barred counterclaim.