Wednesday, July 27, 2016

Mitigation of Damages

Delco Automation Inc. v. Carlo's Electric Limited, 2016 ONCA 591:

[25]        Although a plaintiff is entitled to recover damages for the losses it suffers from the defendant's breach of contract, the extent of those losses may depend upon whether it has taken reasonable steps to avoid their accumulation: Michaels v. Red Deer College (1975), 57 D.L.R. (3d) 386 (S.C.C.), at p. 390. Where, after the breach of a commercial contract, a defendant makes an offer to the plaintiff that would reduce the losses incurred, the plaintiff is generally required to accept a reasonable offer by way of mitigating its damages. However, it is always a question of fact whether it is reasonable for the plaintiff not to accept the breaching defendant's offer: Payzu Ltd. v. Saunders, [1919] 2 K.B. 581 (C.A.), at p. 589; Nashville Contractors Ltd. v. Middleton, [1984] O.J. No. 99 (C.A.).

Of the Law Societies of Upper Canada and Nunavut 

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