What Is Mitigation of Damages?
Mitigation of damages — the "duty to mitigate" — is the principle that a party harmed by a breach of contract or a wrongful act must take reasonable steps to limit its losses, and cannot recover for losses it could have reasonably avoided. The injured party need not act perfectly or take extraordinary measures, but it must act reasonably rather than letting damages pile up.
How It Works
- After a breach or injury, the injured party must make reasonable efforts to reduce the harm
- Damages that could reasonably have been avoided are not recoverable
- Reasonable costs incurred while mitigating are themselves recoverable
Common Florida Examples
A landlord whose tenant breaks a lease generally must make reasonable efforts to re-rent the unit rather than let it sit empty and sue for all the remaining rent. A business harmed by a breached supply contract should seek reasonable substitute goods. The duty is a defense as much as a rule: a defendant can argue that the plaintiff's recovery should be reduced by the losses it failed to mitigate. What counts as "reasonable" depends on the circumstances and is often a question for the finder of fact.
Related Terms
- Damages — What the duty limits
- Breach of Contract — A common trigger of the duty
- Material Breach — The kind of breach that creates losses to mitigate
Barnes Walker Litigation
Barnes Walker's litigation attorneys handle damages and mitigation issues in Florida contract and landlord-tenant disputes. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC