Texas Supreme Court Clarifies Recoupment Defense and Statute of Limitations in Lease Breach Claims

The Texas Supreme Court held that a lessee's claim for liquidated damages arising from a lessor's breach of the obligation to deliver possession on a specified date constitutes an independent cause of action subject to the statute of limitations, and cannot be asserted as recoupment against a later rent claim. The Court distinguished between defenses that merely negate a plaintiff's right to recover (not subject to limitations) and independent causes of action that do not go to the foundation of the plaintiff's demand (subject to limitations even when pleaded defensively).