The Collaborative International Dictionary of English v.0.48:

Recompensation \Re*com`pen*sa"tion\ (r?*k?m`p?n*s?"sh?n), n.
   [Cf. LL. recompensatio.]
   1. Recompense. [Obs.]
      [1913 Webster]

   2. (Scots Law) Used to denote a case where a set-off pleaded
      by the defendant is met by a set-off pleaded by the
      plaintiff.
      [1913 Webster]

Bouvier's Law Dictionary, Revised 6th Ed (1856):

RECOMPENSATION, Scotch law. When a party sues for a debt, and the defendant
pleads compensation, or set-off, the plaintiff may allege a compensation on
his part, and this is called a recompensation. Bell's Dict. h.t.