Compensation Limited Where Claimant Successfully Mitigates Losses

Dispute Resolution

In litigation cases, there is a well-established principle that where an individual suffers loss as a result of another’s negligence, they should take steps to mitigate and reduce that loss as far as possible. This runs alongside the aim of compensation being to put the person who has suffered the loss in the position they would have been in other than for the negligent act, not to improve their position as a result of the negligent act.

The case of Bacciottini and Cook v Gotelee & Goldsmith (2014) has re-emphasised the above principles, even if this means compensation are minimal solely as a result of the claimant’s own efforts to mitigate.

This decision reflects the careful approach the Courts take in terms of needing to balance the right to be compensated for loss and not unduly punishing those who have been negligent where the resultant loss has been mitigated or reduced as far as possible.

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