(a) Mutual judgments between the same parties rendered by the same or different justices of the peace may be set off against each other.
(b) When judgments are rendered by the same court, the justice shall strike the balance as it appears from the judgments on his docket and shall issue executions therefor in favor of the party to whom the balance appears to be due.
(c)
(1) If the judgment proposed to be set off was rendered by another justice of the peace, the party offering it must obtain a transcript thereof, with a certificate of the justice of the peace who rendered it endorsed thereon, stating that no appeal has been taken and that the transcript was obtained for the purpose of being used as a setoff in that case. However, the transcript shall not be given until the time for taking an appeal has elapsed.
(2) The justice so giving a transcript shall make an entry in his docket, and all other proceedings in his court shall be stayed.
(3)
(A) When the transcript is presented to the justice who has rendered a judgment between the same parties, as aforesaid, if execution has not been issued on the judgment rendered by him, he shall strike a balance between the judgments and issue execution for such balance.
(B) If, at the time of filing the transcript, execution has already been issued, the justice of the peace shall also issue execution on the transcript filed with him, and deliver it to the same officer who has the other execution. Such officer shall treat the lesser execution as so much cash collected on the larger and proceed to collect the balance then found due.
(4)
(A) When the judgment is allowed to be set off, as provided in this section, the transcript thereof shall be filed among the papers of the case in which it is so used and the proper entry made in the docket of the justice of the peace.
(B) However, if the justice of the peace refuses the judgment as a setoff, he shall so certify on the transcript and return it to the party who offered it. When the transcript is filed in the office of the justice of the peace who gave it, proceedings may be held by him in the same manner as if no such transcript had been certified by him.
(d) The costs in suits where mutual judgments have been obtained shall not be set off unless the balance of cash actually collected on the larger judgment be sufficient to pay the costs of both judgments, and such cost shall be paid therefrom accordingly.
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