Mitigation of damages

Definition

Mitigation of damages refers to the legal principle that a party suffering loss or injury must take reasonable steps to reduce or minimize their damages. This concept emphasizes that a plaintiff cannot claim compensation for losses that could have been avoided through reasonable efforts, connecting to the responsibility of individuals to limit their own harm in both torts and contractual situations.

5 Must Know Facts For Your Next Test

1. The plaintiff has the burden to prove they took reasonable steps to mitigate their damages; failure to do so can result in reduced compensation.
2. Mitigation does not require the injured party to take extreme measures or incur unreasonable costs; it only requires reasonable efforts.
3. In employment-related cases, mitigation may involve seeking alternative employment after wrongful termination.
4. Courts will often evaluate what a reasonable person would have done in the same situation when determining if mitigation was adequate.
5. If a plaintiff refuses a reasonable offer that would mitigate their damages, they may not be able to recover the full amount claimed.

Review Questions

• How does the principle of mitigation of damages impact the amount a plaintiff can recover in a tort case?
  • Mitigation of damages impacts recovery by requiring plaintiffs to demonstrate they took reasonable actions to minimize their losses. If a plaintiff fails to mitigate, courts can reduce their awarded damages based on what could have been avoided. This principle encourages individuals to act responsibly in response to harm and reinforces the idea that compensation should reflect actual losses incurred, not inflated claims.
• In what ways might mitigation of damages be applied in employment law cases, particularly regarding wrongful termination?
  • In employment law cases involving wrongful termination, mitigation of damages may require the employee to seek new employment actively. Courts expect plaintiffs to make reasonable efforts to find comparable work, and any income earned post-termination can offset lost wages claimed in a lawsuit. If an employee declines suitable job offers or fails to apply for jobs within their skill set, they risk reducing their recoverable damages due to not mitigating appropriately.
• Evaluate how the concept of foreseeability is linked to the mitigation of damages and its implications for both plaintiffs and defendants in tort actions.
  • Foreseeability is essential in assessing both liability and mitigation of damages because it determines whether losses were predictable as a consequence of a defendant's actions. If damages were foreseeable, plaintiffs must demonstrate they mitigated those losses reasonably. For defendants, showing that a plaintiff failed to mitigate can limit their liability by arguing that some losses were avoidable. This interconnectedness influences strategies used by both parties in litigation, impacting case outcomes significantly.

Related terms

Consequential Damages:

Damages that can be recovered for losses that do not flow directly from an act but are a consequence of the injury.

Foreseeability:

The ability to predict or anticipate potential damages that may arise from an action, often tied to the scope of liability.

Negligence: A failure to exercise the level of care that a reasonably prudent person would in similar circumstances, often leading to liability for damages.