Recoupment Theory (Eminent Domain) Law and Legal Definition

Recoupment theory is applied in determining the amount of property subject to condemnation under the power of eminent domain.

The theory is that if the public body is permitted to take somewhat more than that which is barely necessary for the improvement or construction, it will be able to dispose of parts of the property not needed at prices that would enable it to recoup much of the cost of the improvement or construction. [Cincinnati v. Vester, 33 F.2d 242, 243-244 (6th Cir. Ohio 1929)]