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The Duty to Mitigate Damages

·

By

ACL

The short answer

After a breach, the injured party must take reasonable steps to limit its losses. Losses that reasonable efforts would have avoided generally cannot be recovered.

Where it fits in your case

Immediately after a breach and throughout the dispute.

What to expect

  • Reasonable, not perfect. You need not take extreme or risky steps.

  • Costs of mitigating are usually recoverable as damages.

  • Burden. The breaching party typically must prove a failure to mitigate.

What we need from you

Records of replacement efforts, quotes, and decisions made after the breach.

Common misconceptions

  • “We can let damages pile up.” Avoidable losses may be cut.

  • “Mitigation means accepting any deal.” Only reasonable alternatives.

This resource provides general information about Illinois and federal law, not legal advice about your situation. Reading it does not create an attorney-client relationship. The right answer often depends on the specific facts, contract language, policy wording, and deadlines involved.

ALLISONCHOLAW / BUSINESS LITIGATION & COUNSEL

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