MITIGATION

Question 1

MITIGATION

Answer 1

Rule: The aggrieved party cannot recover for any losses that it could have avoided without unreasonable risk, burden, or humiliation
1) Aggrieved party must take reasonable efforts to mitigate. If they fail to successfully mitigate, the breaching party is still fully responsible for expectation damages
B) You cannot pile up your damages: once a party notifies the other of their breach, the aggrieved party doesn’t have a claim to any damages from that point on if they disregard the breach and continue to perform

Question 2

Parker v. 20th Century Fox

Answer 2

Shirley MacLaine gets song and dance role in Bloomer Girl, but it’s cancelled so she gets replacement offer in western movie. She rejects and sues for the fee she would have received for Bloomer Girl

a) Typical rule: the measure of recovery for wrongful discharge is the agreed upon salary minus the amount the employee could have earned with reasonable effort from other employment
(i) This court adds that the other employment must be comparable and not of different/inferior kind

Question 3

Jordan v. MCI

In re Worldcom, Inc.

Answer 3

Rule of Law:
A non-breaching party has a duty to mitigate the damages resulting from breach.

Jordan argues that he is a lost volume seller and would suffer dilution of reputation. Court doesn’t buy it.