If a defendant’s setoff leaves a balance in the defendant’s favor, the general sessions court must enter judgment for the defendant; the defendant may also use a docket satisfaction/receipt procedure when the setoff exceeds the court’s jurisdiction.
If the defendant pleads a setoff to the plaintiff's debt, and it appears that there is a balance due in favor of the defendant, the general sessions court shall enter up judgment in favor of the defendant and against the plaintiff for the balance. If the plaintiff fails in establishing any demand against the defendant, the defendant shall have a judgment against the plaintiff for the amount that the proof upon the defendant's cross action shows that the defendant is entitled to, with costs. If the residue upon the defendant's setoff, after satisfying the plaintiff's debt, exceeds the court's jurisdiction, the defendant may enter on the court's docket a satisfaction of so much of the defendant's claim as the amount of the plaintiff's demand, as ascertained by the court, and tender the plaintiff a receipt for the amount thus setoff, in which case judgment shall be rendered in favor of the defendant for costs. Code 1858, §§ 4160, 4162 (deriv. Acts 1815, ch. 53, § 1); Acts 1879, ch. 222, § 1; Shan., §§ 5973, 5975; Code 1932, §§ 10174, 10176; impl. am. Acts 1979, ch. 68, §§ 2, 3; T.C.A. (orig. ed.), §§ 19-417, 19-419; Acts 1993, ch. 241, § 41; T.C.A., § 19-1-113 . Textbooks. Tennessee Jurisprudence, 17 Tenn. Juris., Justices of Peace and General Sessions Courts, § 14; 22 Tenn. Juris., Setoff, Recoupment and Counterclaim, § 13. NOTES TO DECISIONS Decisions Under Prior Law 1. Dismissal by Plaintiff. 2. Appeal — Setoff by Defendant. 1. Dismissal by Plaintiff. Circuit court was not entitled to dismiss case on motion of plaintiff where defendant had obtained judgment in justice court (now general sessions court) for excess of setoff over amount demanded in complaint. Riley & White v. Carter, 22 Tenn. 230, 1842 Tenn. LEXIS 77 (1842). Where the defendant has filed a plea of setoff, if the plaintiff voluntarily dismisses his suit, the defendant may elect to proceed on his setoff in the capacity of plaintiff and the cause will be tried as if he had brought an independent suit on his counterclaim. Meyer, Weis & Co. v. Gateus, 4 F. 35, 1880 U.S. App. LEXIS 2260 (C.C.D. Tenn. 1880). 2. Appeal — Setoff by Defendant. In trial of case on appeal from justice court (now general sessions court) wherein plaintiff had recovered judgment of $59.00 the defendant was entitled to introduce evidence of a setoff between $90.00 and $100, since if setoff was proved, the defendant would be entitled to a judgment for balance due in amount within jurisdiction of justice court. McClain v. Kincaid, 13 Tenn. 232, 1833 Tenn. LEXIS 149 (1833). Collateral References. Justices of the peace 45, 119(2).