What Is Mitigation of Damages?

Concept requiring one injured by another's breach of agreement or tort to employ reasonable diligence and care to avoid aggravating the injury or increasing the damages. It can also refer to a defendant's request to the court for a reduction in damages owed to the plaintiff.

Legal Definition

Mitigation of damages refers to two primary legal concepts:

• Obligation of the Injured Party: The requirement that one injured by another’s breach of an agreement or tort must employ reasonable diligence and care to avoid aggravating the injury or increasing the damages.
• Defendant’s Request: A defendant’s request to the court for a reduction in damages owed to the plaintiff, justified by evidence demonstrating that the plaintiff is not entitled to the full amount that might otherwise be awarded.

Origin and Historical Context

The principle of mitigation of damages originates from the common law tradition, which seeks to ensure fairness and prevent unjust enrichment. Historically, courts have encouraged injured parties to take reasonable steps to reduce their losses, thus ensuring that the amount of damages awarded reflects not only the wrongful act but also the injured party’s efforts to mitigate harm.

Principles of Mitigation

Requirement of Diligence and Care

The injured party must act with reasonable diligence and care. This does not mean they must take extraordinary or burdensome steps, but they must make a genuine effort to minimize losses.

Evidence and Justification

For a defendant to succeed in reducing damages, they must provide evidence that the plaintiff failed to mitigate their losses. The court will then assess whether the actions taken by the plaintiff were reasonable and whether any reduction in damages is warranted.

Applicability in Contract and Tort Law

• Contract Law: In cases where a contract has been breached, the non-breaching party must mitigate damages by seeking alternate means of performance or replacement of goods/services.
• Tort Law: When harm is caused by a tort, the injured party must mitigate damages by taking steps to secure medical treatment, repairs, or other necessary actions to prevent further loss.

Examples and Illustrations

Example 1: Employment Law

An employee wrongfully terminated must seek alternative employment to mitigate the damages they claim for lost wages. Failure to seek new employment may result in a reduction of damages awarded.

Example 2: Property Damage

If a property is damaged by another party, the owner must take reasonable steps to prevent further damage, such as making temporary repairs or securing the property. Failure to do so may reduce the compensation they receive.

Comparisons and Related Terms

Duty to Mitigate

This is synonymous with the mitigation of damages and refers to the injured party’s responsibility to reduce their losses.

Contributory Negligence

While related, contributory negligence pertains to the plaintiff’s own negligence contributing to the harm suffered, rather than their failure to mitigate damages after the harm has occurred.

FAQs

What constitutes reasonable steps to mitigate damages?

Reasonable steps are those that an average, prudent person would take under similar circumstances to reduce losses.

Can the injured party recover expenses incurred while mitigating damages?

Yes, expenses reasonably incurred in the process of mitigation can often be recovered as part of the damages.

What happens if the injured party fails to mitigate damages?

If the injured party fails to take reasonable steps to mitigate, the court may reduce the amount of damages awarded to reflect what could have been avoided through mitigation.

References

1. Smith, John & Jones, Robert. Principles of Tort Law. New York: Legal Publishing, 2020.
2. Schwartz, David S. Legal Remedies: The Law of Damages. Chicago: University Press, 2019.
3. Brown, Linda. Contract Law: Theory and Practice. Boston: Academic Press, 2018.

Summary

Mitigation of damages is a fundamental legal concept requiring injured parties to act with reasonable diligence and care to minimize their losses after a breach of agreement or tort. It ensures fairness in awarding damages and prevents unjust enrichment. Both plaintiffs and defendants must understand this principle, as it plays a crucial role in the determination and adjustment of compensatory awards in legal disputes.