Also known as:minimize loss · minimizing losses · minimized loss · mitigation of damages · duty to mitigate
Written by attorneys · grounded in primary & secondary sources — see below
A principle requiring a party injured by a breach or tort to take reasonable steps to reduce the resulting damages rather than allowing them to accumulate.
Sources & Authorities
How it applies
Common Examples
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Benefit Offsets Tort Harm
Leah Lamb's property suffered flooding from Lone Peak Energy's negligent pipeline work. The same work installed improved drainage that increased the land's value by half the repair cost. The court reduced Leah's damages award by the value of the drainage improvement under the benefit rule.
Smoking History Limits Recovery
Luna Lang sued a cigarette maker after developing lung disease. Evidence showed she continued smoking heavily after warnings appeared on packs. The jury reduced her damages by the percentage of harm attributed to her own continued conduct.
Select any source to read its text and confirm it supports the definition.
Uniform Acts
Restatements
Study Supplements
Cipollone v. Liggett Group, Inc.893 F.2d 541 (3d Cir.1990), affirmed in part and reversed in part, 505 U.S. 504 (1992)
Actress Rejects Comparable Role
Laura Lewis refused a substitute film role offered after her original contract was breached. The role was substantially similar in pay and prestige. The court limited her recovery to the difference between the original salary and the substitute she declined.
Parker v. Twentieth Century-Fox Film Corp.3 Cal.3d 176, 474 P.2d 689
Driver Ignores Seatbelt Defense
Liam Larson suffered enhanced injuries in a car crash because he was not wearing a seatbelt. The manufacturer proved the omission increased his harm. The jury reduced his damages award by the percentage attributable to his failure to buckle up.
Daly v. General Motors Corp.20 Cal.3d 725, 575 P.2d 1162, 144 Cal.Rptr. 380
Landlord Fails to Relet Unit
Lance Lee abandoned his apartment mid-lease. The landlord made no effort to advertise or show the unit to new tenants. The court denied recovery for rent that could have been avoided through reasonable reletting efforts.
Sommer v. Kridel378 A.2d 767
Employer Must Prove RFOA
Leo Lynch challenged his layoff under the ADEA. The employer claimed the decision rested on reasonable factors other than age. The Supreme Court placed the burden on the employer to prove that defense rather than requiring the employee to disprove it.
Meacham v. Knolls Atomic Power Laboratory554 U.S. 84, 91–99 (2008)
Common questions
Frequently Asked
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Does a landlord have a duty to mitigate damages after a tenant abandons the premises?+
Yes. A landlord seeking relief under the uniform act must make reasonable efforts to relet the unit. The duty applies even when the tenant wrongfully abandons, and the landlord may not recover rent that could have been avoided through reasonable reletting.
Supporting sources
When a party declines a reasonable opportunity to reduce its loss, what is the effect on damages?+
The party may not recover the portion of damages that could have been avoided. In the restaurant lease case, the landlord's refusal to relet to an available tenant at reduced rent prevented full recovery of the remaining rent.
Supporting sources
Does the duty to mitigate apply when the injured party claims the substitute would alter its core mission?+
Courts weigh whether acceptance would impose an undue burden. Rejection of conditional grants that would halve a nonprofit's project size may be reasonable if the change would abandon the organization's defining purpose, allowing full recovery.
Supporting sources
How does the principle interact with a claim for consequential damages under the UCC?+
A buyer must still take reasonable steps to prevent loss that could have been avoided by cover or otherwise. Failure to explore known leasing options before breach may limit recovery even when the seller knew of special circumstances.
Supporting sources
40 Cal. 3d 488, 709 P.2d 837Property
…has, however, been undermined by the adoption in California of a rule that lessors — like all other contracting parties — have a duty to mitigatedamages upon the lessee's abandonment of the property by seeking a substitute lessee. (See Civ. Code, § 1951.2.) (8) Furthermore, the values that go into the personal selection of a lessee…