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New Jersey plaintiff attorneys counsel clients on reasonable measures. A plaintiff's duty to mitigate damages is widely recognized in business and employment litigation. Put simply, if Party A breaches a contract, Party A must pay damages for the economic loss the breach causes Party B.
Duty to mitigate damages is the legal concept that a victim should do everything reasonable that they can to keep their losses from becoming worse. Mitigating damages means taking positive, proactive steps to reduce the total amount of harm that the victim suffers because of the accident.
When catastrophe strikes your home or business, your insurance policy requires that you immediately make every reasonable effort to stop the damage and protect all insured property from further or additional damages.
What is the duty to mitigate damages? In essence, this concept means that you have a responsibility to minimize your damages. Your duty to mitigate damages can arise either explicitly (most insurance contracts will have some language to this effect) or may arise by implication (implied by the law of contracts).
In a breach of contract case, upon receiving notice that one party to a contract does not intend to perform, the other party is required to mitigate damages, meaning that it must take reasonable efforts to avoid further losses from the breach.