Why should you be concerned about mitigating the damages in a breach of contract case? Is this only the case if you are the one who may have breached the contract, or does it also apply if you are the victim of a broken contractual agreement? Why is it important to seek the advice and counsel of the experienced breach of contract attorneys at the Watkins Firm if you have been the victim of a breach of contract?
Key Takeaways about Mitigating the Damages in a Breach of Contract Case in San Diego or Anywhere in California:
- California and federal contract law require the victim of a contract breach to do everything possible to reduce the financial and business impact of the other party’s failure to fulfill the terms of a contractual agreement.
- The victim of a breach must take timely, prudent, and reasonable action to limit or reduce the financial damages associated with contract breach. The failure to do so is actually a valid defense in a breach of contract dispute or lawsuit.
- There are so many available remedies in a breach of contract case, depending upon the type and content of the contract itself.
The Victim of the Breach Must Mitigate the Damages in a Breach of Contract Case
The business or victim of the breach has the responsibility of mitigating the damages in a breach of contract case in San Diego and across the State of California. Many experienced business people do not understand the responsibility to mitigate damages, or the ramifications of the failure to take action to reduce or eliminate losses. San Diego businesses are able to recover for the financial losses or “damages” associated with a breach of contract. However, the law requires them to take prompt, prudent and substantial steps to mitigate the impact of the breach upon their own business.
What Actions Should You Take if You are the Victim of a Breach of Contract?
What actions should you take if you are the victim of a breach of contract? California and federal law requires the victim of a breach to do everything possible to reduce the financial and business impact of the other party’s failure to fulfill the terms of a contractual agreement. This may require them to make arrangements with downstream consumers or customers who were affected by the breach. It may also be necessary to find alternative sources who can provide the “benefit of the bargain” anticipated in the original contract prior to the breach.
There are so many available remedies in a breach of contract case, depending upon the type and content of the contract itself. However, in order to preserve all legal and financial options, there are several internal and external steps which can and must be taken in a timely, prudent and substantive manner to reduce the impact of the breach in order to preserve the ability to recover associated damages down the road.
Pro-Tip: “Well, mitigating the damages is an obligation under the law. A lot of people get hurt or damaged by someone who breaches a contract. And then they go with this attitude that, ‘well, since they breached the contract, (the other party) owes us,’ and they don’t try to mitigate their damages. Mitigating the damages means doing things that would make the victim of the breach suffer as much from the breach of contract or other types of causes of action. And what happens in the law is a judge or a jury will hear what you did and you’ll think you’re gonna get $300,000 in trial, but they’ll decide that you failed to perform your obligation to mitigate the damages, to do everything you could to lessen the amount of damages you suffered.
The primary reasons to mitigate the damages in a breach of contract is to make sure you retain the right to obtain a judgment and compensation, and to preserve the maximum amount available to you under the law.
If it’s a minor breach, that means that you still have a contract. You still have an agreement and you can demand performance, or you can demand that you have to give less performance on the other side, but yet the contract isn’t completely breached and it’s not over. A material breach gives you more remedies, remedies that are important and may sound minor today. But there’s been many a situation where having a material breach gives the party who was breached or damaged the right to rescind the contract or the right to specific performance, and forced the performance of the contract. All of these things have amazing consequences, if you look at factual situations in breach of contract law.” – Dan Watkins, Founding Partner
Experienced San Diego Breach of Contract Attorney
Your experienced breach of contract attorney at the Watkins Firm can provide insight and counsel at every step of this process, and help to protect your legal and financial interests in breach of contract cases.
We take a unique approach to resolving disputes associated with a breach of contract that is specifically designed to resolve them quickly and in a cost-effective. Part of the responsibility to mitigate the damages in a breach of contract case in San Diego and Southern California is to reach out to the other contract party and negotiate a “settlement” or amended terms that allow them to perform on the original agreement. They are of course responsible for the additional costs you’ve been forced to bear for the breach, but this strategy can preserve an important business relationship while resolving critical business issues like a breach of contract quickly and cost-efficiently.
If you are the victim of a breach of contract in San Diego or anywhere in California we invite you to review our podcast Episode 5 – Breach of Contract as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today
Meet Daniel Watkins:
Daniel W. Watkins is a true people person who sincerely listens. He cares deeply about what others are going through. Dan enjoys digging into the facts and finding creative solutions to problems. He contributes his insights candidly and constructively.
Dan’s interest in people make him deeply invested in every relationship and his exuberant personality makes him a true litigator. Dan fights for his clients with a fierce and calculated commitment.
Dan has practiced in the areas of business, medical practices and healthcare business, high tech/science, real estate and employment defense law since 1987. He is a trusted litigation strategist and true trial attorney with over 50 jury and bench trials to his credit. Dan has successfully represented both large companies and individuals and achieved substantial victories in well-publicized trials throughout California and the U.S.
He is experienced in business and corporate formation and administration, as well as all forms of alternative dispute resolution, including binding arbitration and mediation.
THE ROAD TO BECOMING A BUSINESS LAWYER AND LITIGATOR
Dan has almost 40 years of experience working with, for and against some of the largest insurance companies in the country. He has successfully tried and litigated cases in the areas of Healthcare Compliance, Commercial Litigation, Unfair Business Practices, Fraud, Breach of Contract, Battery, Premises Liability, Product Defect, Medical Malpractice, Discrimination, Sexual Harassment, Construction Defect, as well as Unfair Competition, Defamation, and Trade Secrets.
In December 2003, Dan commenced litigation against Health South Surgery Centers-West, Inc and its’ subsidiaries, exposing the company’s extensive mismanagement and misconduct of its’ surgery centers. Dan has also been asked by some of California’s largest municipalities and corporations to conduct legally required investigations into matters involving alleged employment discrimination and harassment.
