Also known as: avoidable consequences rule · doctrine of avoidable consequences · mitigation of damages · avoidable consequences doctrine
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
A damages limitation principle that prevents recovery for losses the injured party could have avoided through reasonable efforts undertaken without undue risk, burden, or humiliation. The rule treats reasonable mitigation expenditures as recoverable even when those efforts ultimately fail to reduce the loss.
A damages limitation principle that prevents recovery for losses the injured party could have avoided through reasonable efforts undertaken without undue risk, burden, or humiliation. The rule treats reasonable mitigation expenditures as recoverable even when those efforts ultimately fail to reduce the loss.
Rhea Reynolds, an established film actress, was terminated from a lead role in a musical production. The studio offered her a supporting part in a Western that required different skills and paid substantially less. Reynolds declined the offer and sued for lost wages. Because the substitute role was not substantially similar, her refusal does not reduce the damages recoverable for the original breach.
When tortious conduct confers a special benefit on the very interest harmed, the value of that benefit offsets damages to the extent equity permits.
Select any source to read its text and confirm it supports the definition.
When tortious conduct confers a special benefit on the very interest harmed, the value of that benefit offsets damages to the extent equity permits.
Each sense below has its own examples, sources, and questions.
No. When a party makes reasonable efforts to reduce loss after a breach or tort, the costs of those efforts remain recoverable even if the efforts fail. The rule limits only losses that could have been avoided, not the expense of reasonable attempts to avoid them.
Supporting sources
The rule does not impose a duty on the landlord to relet when the lease is silent. The landlord may continue to demand rent for the balance of the term or accept surrender. Either choice determines whether future rent is owed.
Supporting sources
Ryan Roberts's negligent excavation undermined the foundation of Rebecca Ross's adjacent warehouse, requiring $180,000 in repairs. The same excavation incidentally improved drainage on Ross's lot, raising its market value by $45,000. The court reduces Ross's net recovery by the amount of the drainage benefit because the improvement directly affects the same property interest harmed by the tort.
The value of the benefit is credited against damages to the extent equity requires. The offset applies only to the interest directly affected by the tortious conduct.
Supporting sources
…to reject, or fail to seek, different or inferior employment lest the possible earnings therefrom be charged against him in mitigation of damages.[^maj-5] Applying the foregoing rules to the record in the present case, with all intendments in favor of the party opposing the summary judgment motion—here, defendant—it is clear that…