Legal Definitions - duty to mitigate

The duty to mitigate is a fundamental legal principle that requires a party who has suffered harm or loss due to another's actions to take reasonable steps to minimize or limit the extent of that harm. This obligation applies across various legal areas, including situations involving breaches of contract and civil wrongs (torts).

Essentially, if someone else causes you a problem, you can't just let the problem get worse and then expect them to pay for all the additional, avoidable damage. You are expected to act responsibly to prevent unnecessary losses. If a party fails to make reasonable efforts to mitigate their losses, they may not be able to recover damages for the portion of the harm that could have been avoided through such efforts.

• Example 1: Breach of an Employment Contract

  Imagine a company wrongfully terminates an employee's contract with several months remaining. The employee has a duty to mitigate their financial losses. Instead of simply remaining unemployed and suing for all the lost wages for the remainder of the contract, the employee is expected to actively search for comparable new employment. This might involve updating their resume, applying for jobs, and attending interviews.

  How it illustrates the term: If the employee finds a new job within a reasonable timeframe, the damages they can claim from the former employer will be reduced by the income earned from the new position. If the employee makes no genuine effort to find new work, a court might reduce the amount of lost wages they can recover, as those losses could have been avoided through reasonable mitigation efforts.

• Example 2: Property Damage from Negligence

  Suppose a neighbor's tree falls onto your garage due to their negligence in maintaining it, causing significant structural damage. You have a duty to mitigate your damages. This means you should promptly contact your insurance company, obtain repair estimates, and arrange for reasonable repairs to prevent further damage, such as water intrusion or collapse, rather than letting the damaged structure sit indefinitely.

  How it illustrates the term: If you delay repairs for an unreasonable amount of time, and the garage suffers additional damage (e.g., mold growth, further structural deterioration due to exposure to elements) that could have been prevented by timely action, you might not be able to recover for those additional, avoidable losses from your neighbor.