UNITED STATES SUPREME COURT DECISIONS ON-LINE

While a nonresident defendant corporation may not lose its right of objecting to the jurisdiction of the court on the ground of insufficient service of process by pleading to the merits pursuant to order of the court after objections overruled, it does waive its objections and submits to the jurisdiction if it also sets up a counterclaim, even though it be one arising wholly out of the transaction sued upon by plaintiff and in the nature of recoupment, rather than set-off.

At common law, a the doctrine has been developed, a demand in recoupment i recognized as a cross-demand, as distinguished from a defense.

The facts are stated in the opinion. clubjuris

Page 204 U. S. 288