Short answer. Yes. Article 1283 lets a party being sued on an obligation set off a damages claim he has against the other side, provided he proves both his right to the damages and their amount in the same case. You can raise it as a set-off instead of a separate suit, but you must prove it, not merely assert it.

What the law says

the former may set it off by proving his right to said damages and the amount thereof

Civil Code, Article 1283 — Compensation of Damages Claims. Read the full provision →

A damages claim can be set off inside the same case

Set-off, or compensation, is how the law nets out debts that two people owe each other, so that only the balance is paid. Usually this works with two clear, liquidated money debts. Article 1283 extends the idea to a damages claim raised within a lawsuit. If one of the parties to a suit over an obligation has a claim for damages against the other, he may assert that claim in the same proceeding as a set-off against what is demanded of him, instead of being forced to sue separately to recover it.

You must prove the right and the amount

The extension comes with a firm condition. The article says the party may set it off by proving his right to said damages and the amount thereof. A damages claim, unlike a fixed loan, is not automatically certain in either existence or size, so it cannot simply be deducted on the say-so of the party raising it. He carries the burden of establishing, with evidence, that he is entitled to damages and how much they come to. Only what he proves can be set against the obligation he is being sued upon.

Why this is allowed

Permitting the set-off inside the same case avoids the waste and delay of a separate lawsuit over closely related claims. Where a debt and a damages claim grow out of the same dealings between the parties, it is sensible for one court to weigh both and strike the balance. This spares the parties duplicate litigation and prevents the odd result of one party collecting in full while having to chase the other separately for damages arising from the very same dispute.

How to use it in practice

If you are sued on a debt but believe the person suing you owes you damages, plead the set-off and come prepared to prove it. Gather the evidence that shows both your entitlement and the figure, because the court will offset only the amount you actually establish. Treated seriously, Article 1283 can reduce or even erase your liability in the same case; treated as a bare allegation, it will fail, because the provision rewards proof, not assertion.

Cases citing this provision

These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.

Note. Statute text quoted on this page is reproduced from the official enactment and is linked to the full provision. The explanation around it is general legal information from Vivas & Nobles Law Office, not legal advice. Whether it applies to your situation depends on facts only a lawyer reviewing them can assess.