LEGAL PRINCIPLE: DAMAGES – Mitigation of Loss – Plaintiff Has a Duty to Mitigate Loss
PRINCIPLE STATEMENT
In all civil matters where damages have been suffered, the complainant must try in earnest to mitigate his loss. Once the plaintiff discovered he could not recover the chattel, he ought to have taken steps to mitigate his loss.
RATIO DECIDENDI (SOURCE)
Per Belgore, JSC, in Ordia v. Piedmont (Nigeria) Ltd (1995) NLC-2651991(SC) at pp. 8–9; Paras B–C.
"In all civil matters where damages have been suffered the complainant must try in earnest to mitigate his loss. Once the plaintiff discovered he could not recover the barges despite the consent judgment at the Supreme Court… he ought to have taken steps to mitigate his loss."
EXPLANATION / SCOPE
A plaintiff claiming damages has a duty to take reasonable steps to minimise the loss. The principle applies to all claims for damages. Failure to mitigate may reduce the recoverable amount. The burden is on the defendant to prove that the plaintiff failed to mitigate. The plaintiff is not required to take extraordinary measures. The rule promotes economic efficiency. The plaintiff cannot recover damages for loss that could have been avoided. The court will assess what a reasonable person would have done. The principle applies in contract and tort.