Does a plaintiff have a duty to take reasonable steps to mitigate damages arising out of a breach of contract?

California, United States of America


The following excerpt is from Sacramento Mun. Util. Dist. v. FCC Corp., C064248, Super. Ct. No. 05AS00862 (Cal. App. 2012):

California law requires that "[a] plaintiff who suffers damage as a result of either a breach of contract or a tort has a duty to take reasonable steps to mitigate those damages and will not be able to recover for any losses which could have been thus avoided." (Shaffer v. Debbas (1993) 17 Cal.App.4th 33, 41.) In a trial on the issue of damages arising out of the breach, the party responsible for the breach may nonetheless attempt to reduce its liability for damages by introducing

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evidence that the other party could have taken reasonable steps to reduce its losses. (See ibid.)

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