Fifth Circuit Provides Rare Overview of the Doctrine of Equitable Recoupment

Fifth Circuit Provides Rare Overview of the Doctrine of Equitable Recoupment

When an operator mistakenly overpays a royalty owner, it can recoup the overpayment from future royalties.  While this is a common industry practice, the doctrine of equitable recoupment is seldom discussed in detail by Texas courts.  Recently, however, the Fifth Circuit provided an in-depth overview of the doctrine of equitable recoupment in its opinion affirming a district court decision from the Western District of Texas in DDR Weinert, Ltd. …