Rhode Island Depositors Economic Protection Corporation v. Bowen Court Associates

Summary

The Supreme Court of Rhode Island reversed the Superior Court’s judgment for Bowen Court Associates, holding that DEPCO’s assumption of RICCU’s assets was free of any recoupment defense and that the recoupment claim is not a real defense under the DEPCO statute. The court interpreted G.L. 1956 § 42‑116‑6(b) liberally to bar such defenses and entered judgment for DEPCO. The decision also clarified that recoupment differs from setoff and is not a permissible counterclaim in this context.