Schadebeperkingsplicht

duty to mitigate damages

The duty to mitigate damages is the obligation of the injured party to take reasonable measures to limit the extent of the damage.

The duty to mitigate loss rests on the injured party in both tort and contract. This duty requires the injured party to take reasonable steps to prevent or limit further loss, for example by acting in a timely manner or seeking alternatives.

The duty is relevant because a breach may result in a reduction or exclusion of damages. The court assesses whether the injured party has done enough to mitigate the loss, with reasonableness and fairness taken into account.

In practice, the duty applies, for instance, in personal injury claims, where the victim must seek medical assistance, or in claims for contractual loss, where a party must engage alternative suppliers.

“The court held that the claimant had breached his duty to mitigate loss by failing to take any steps to limit further business damage.”

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