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Cake day: July 6th, 2023

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  • There’s a general concept in civil law that the plaintiff has an obligation to minimize damages, and therefore that he can’t sue for costs incurred due to his failure to minimize damages.

    For example, consider a tenant who signs an agreement to rent a house for a year, but moves out (and stops paying rent) after only one month. The landlord may be able to sue the tenant for breach of contract: however, the landlord must mitigate damages by making a reasonable attempt to find a replacement tenant for the remainder of the year. The landlord may not simply let the house lie empty for eleven months and then sue the tenant for eleven months’ rent.

    I’m far from a legal expert, so I don’t know if that principle doesn’t apply in cases like this or if the borrowers simply don’t have the resources to defend themselves in court.